Joules shares dive as Next investment talks end
The proposed £15m investment by Next into lifestyle brand Joules Group is off, it has been announced.
Joules confirmed on Tuesday afternoon (September 13) that discussion over Next acquiring an equity stake in the struggling Market Harborough firm had been called off – but that the pair have an “ongoing positive relationship”.
Meanwhile, non-executive director and founder of Joules, Tom Joule, is to make a return to an executive role, promising “surprises and delights” as he takes on responsibility for product development.
The announcement failed to excite investors, with Joules’ share price reaching new lows on Tuesday afternoon. At 4.30pm, Joules shares were changing hands for under 12p – down over 44% in the hour after it was revealed the talks with Next had ended.
A statement from Joules said: “The group continues to develop and execute its strategy and turnaround plan, which focuses on driving higher profitability through a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; optimising the group’s channel mix; and a continuing strong focus on cost control. The group’s outlook for the full year remains unchanged.
“The group continues to assess its ongoing financing requirements and is considering alternative options, including a possible equity raise, to allow the Company to strengthen its balance sheet. A further announcement will be made if and when appropriate.”
