Joules administration: Jobs at risk after failure to secure cash injection
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Joules, which has a store in Ilkley near Leeds, is expected to formally appoint administrators in the next five to 10 days and will also suspend trading of its shares on the stock market. The store is one of more than 130 operated by a chain that employs around 1,600 people. It previously had a store in the Victoria Gate shopping centre in Leeds city centre.
Joules said: "The board is taking this action to protect the interests of its creditors."
The business, founded in 1989, has suffered a slump in shares over the past year following profit warnings amid the cost of living crisis. The retailer has announced plans to file a notice of intention to appoint Interpath Advisory as administrators to the firm and its subsidiaries, including online home and garden retailer The Garden Trading Company, "as soon as reasonably practicable".
Despite the announcement, stores and websites will continue to trade as normal. Next had been in talks with Joules over a deal to buy a minority stake but discussions collapsed in September. The business had also been in talks with strategic investors including founder Tom Joule over a so-called cornerstone equity rise, and also discussed a possible bridge financing deal with Mr Joule and its lender.
The option of a company voluntary arrangement, typically involving a firm agreeing delayed or reduced payments to landlords or other creditors, was also considered as part of a restructuring to reverse fortunes.