Struggling ‘yummy mummy’ fashion brand Joules puts faith in turnaround
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Struggling ‘yummy mummy’ fashion brand Joules relies on a turnaround amid insolvency fears
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Struggling British fashion retailer Joules insisted it is making good progress amid reports it was headed for insolvency.
Weeks after Next abandoned plans to inject £15 million into the company, the favorite of ‘yummy mummies’ clothes, shoes and accessories said it was ‘developing its turnaround plan’.
The comments came after Sky News reported that Joules was considering insolvency proceedings known as a voluntary company arrangement to close loss-making stores and cut rents.
Plan for a turnaround: Joules, a clothing, footwear and accessories company, struggles with finances as cautious consumers face rising inflation, which has fueled a crisis in the cost of living
As a result, shares fell 32.6 percent, or 2.42p, to 5p yesterday, bringing losses for the year to 96 percent.
Joules struggles with finances as cautious consumers face rising inflation, which has fueled the rising cost of living.
UK inflation stood at 9.9 percent in August and is expected to rise, putting further pressure on household disposable spending.
But Joules said: “The group continues to assess its pending financing needs, including a potential capital increase, to enable the company to strengthen its balance sheet.”