Corby workers' jobs at risk as Joules to enter administration after refinancing attempts fail

Fashion and homeware retailer Joules announced that it is planning to appoint administrators as the company nears collapse, risking 1,600 jobs.

Joules’ has a distribution Centre in Saxon Way West, on the Oakley Hay Industrial Estate in Corby, which supports the Market Harborough-based company.

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.

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.