Next in talks to buy £15m stake in Harborough-based Joules
The Harborough based business, which employs some 400 people at its Rockingham Road headquarters, has seen a huge drop in sales due to the cost of living crisis. It is now in talks with fellow Leicestershire-based company Next to buy a stake of around £15million in the business.
Next already sells Joules clothing through its website. It has previously struck similar deals with companies including Reiss and Victoria’s Secret.
In a statement Joules – which is known for its clothing, pet products, accessories and homewares – confirmed it is currently in talks.
A spokesman said: “Joules confirms that it is in discussions with Next Plc about adopting its total platform services to support the group’s long term growth plans. Additionally, in conjunction, Joules confirms it is in discussions with Next about a potential equity investment raising proceeds for Joules of circa £15 million at no less than Joules’ current market price, which would result in Next becoming a strategic minority shareholder in the group.
"The equity investment would be subject to approval by Joules’ shareholders.
“There can be no certainty these discussions will lead to any agreement. A further announcement will be made if and when appropriate.”
Next has previously struck similar deals with companies including Reiss and Victoria’s Secret.
Last month, Joules – which has some 130 stores and employs more than 1,000 people - hired KPMG to assist with efforts to improve “profitability, cash generation and liquidity headroom”.