Harborough-based retailer Joules looks set to go into administration

About 400 people work at the fashion and homeware's Rockingham Road headquarters - and about 1,600 jobs at its distribution centre in Corby are at risk.

The Joules Group includes 132 Joules stores with an online business, and also runs the online-only Garden Trading Company.

On November 7, a statement said the group was ‘in advanced discussions with a number of strategic investors’ to provide a ‘cornerstone’ investment.

But this morning (Monday) they revealed they had failed to attract the equity need and said: “Regrettably therefore, the board of Joules has resolved to file a notice of intention to appoint Will Wright, Ryan Grant and Chris Pole of Interpath Advisory Limited as administrators to the Company and Joules Limited, and Will Wright and Ryan Grant to The Garden Trading Company Limited and Joules Developments Limited as soon as reasonably practicable.

“The board is taking this action to protect the interests of its creditors.

“In light of the above, the board announces that it has requested a suspension of trading in the company's ordinary shares on AIM with effect from 07.30am today."

The group said that a drop in recent trading in the ‘challenging’ UK economic environment has hit consumer confidence and disposable incomes.

They said that while dresses, menswear and more formal product categories have performed well, larger core products such as wellies and knitwear have been impacted, in part, by the milder than expected weather.

And although store sales had been slightly ahead of expectations, ecommerce had been weaker.

Harborough District Council leader Cllr Phil King said: “Officers from the council have contacted Joules to offer support to the company and staff. The council works with partner organisations to offer a range of support for people across the district looking for employment, including job fairs and help with CVs, and we are ready to help where we can at this difficult time.”

MP Neil O’Brien added: “Joules has had such deep roots in Market Harborough for many years, it is incredibly sad to hear the news. I will be following events very closely as we try to work out what this will mean for the staff who work at the company. They will of course be very concerned, as will the very many others who are involved in this much-loved local business. If anyone would like to get in touch with me with questions, please do not hesitate to email me.”

Joules’ website boasts 1.7m ‘active’ customers with a revenue of £199m – more than three quarters of the business is e-commerce and online.

The Joules story began in 1989 when Tom Joule started selling clothing on a stand at a country show in Leicestershire.

When the company listed its shares on London's junior stock exchange market, Aim, in 2016, the company was valued at £140m.

Over the past year its share price has fallen by more than 95 per cent and this morning shares were 9.22p, valuing the company at a little over £10m.

Tom Joule said it was a ‘sad day’ but would remain as ‘business as usual right now’.

He added: “It is my strong belief that Joules remains a desirable, differentiated brand that, with the right model and structure, can thrive again.”