UK’s Joules in talks for potential investment from Next
(Reuters) -British fashion group Joules Group said on Monday it was in talks regarding a potential equity investment of about 15 million pounds ($18.11 million) from retailer Next Plc.
Shares in Joules, which had plunged 77% this year by Friday’s close, jumped 21% in early trade after the company said Next’s investment at no less than current market price would make the FTSE 100 retailer a strategic minority shareholder.
Sky News reported over the weekend that Next had been in discussions to acquire up to 25% in the fashion group.
Joules, which sells clothing, footwear and accessories among others, has been struggling with its finances, profitability and cash generation, as consumers are more cautious about spending during the deepening cost of living crisis.
Joules, whose net debt stood at 17.7 million pounds as of June 26, last month extended its banking facilities. The company had said it was cutting costs amid pressured margins, helping it forecast annual profit outlook ahead of market expectations.
($1 = 0.8282 pounds)
(Reporting by Sinchita Mitra in Bengaluru; Editing by Subhranshu Sahu)