Struggling British fashion retailer Joules insisted it is making good progress amid reports it was heading towards insolvency.
Weeks after Next abandoned plans to inject £15m into the firm, the clothing, footwear and accessories favourite of ‘yummy mummies’ said it was ‘developing its turnaround plan’.
The comments came after Sky News reported that Joules was considering an insolvency procedure known as a company voluntary arrangement to close loss-making stores and reduce rents.
Turnaround plan: Clothing, footwear and accessories firm Joules has been wrestling with finances as cautious consumers face surging inflation, which has fed a cost of living crisis
That sent shares down 32.6 per cent, or 2.42p, to 5p yesterday, taking losses for the year to 96 per cent.
Joules has been wrestling with finances as cautious consumers face surging inflation, which has fed the rising cost of living.
British inflation was 9.9 per cent in August and is expected to rise, which will further squeeze households’ disposable spending.
But Joules said: ‘The group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet.’
