Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Joules sounds the alarm over possible loan default as it calls on investors for emergency funding

by November 8, 2022
November 8, 2022
Joules sounds the alarm over possible loan default as it calls on investors for emergency funding

Joules warned yesterday that it may default on a bank loan at the end of this month and could call on investors for more funding in an emergency capital raise. The news sent its share price down by more than a fifth.

The retailer has said that it needs to agree a bridging loan to be able to repay a £5 million facility that falls due on November 30 and has appealed to Barclays and its founder Tom Joule to secure short-term finance.

The management team is in discussions with investors, including Joule, about a possible capital raise. It is also assessing whether to launch a company voluntary arrangement, an insolvency procedure, which would help cut its rent bill. Joules would need to secure a bridging loan to buy time to push ahead with a CVA and a capital raise.

The company said that trading had been worse than expected in recent weeks and that mild weather had hit sales of outwear, Wellington boots and knitwear.

In a statement, Joules said: “It is the group’s intention to commence consultation with key stakeholders, including suppliers, on the turnaround plan including potential alternative options, should they be required.”

Joule, 54, launched the fashion retailer in 1989 by selling clothes at a country show in Leicestershire. The chain, which is known for its colourful, country-inspired clothing, has 1,700 staff and 130 shops.

In a note, analysts at Shore Capital pointed out that even though the mild weather was not particularly surprising, coming during a cost of living crisis, it was especially unhelpful to clothing retailers, adding: “The mild autumn may augment earnings challenges and perhaps accentuate the need for stock clearing.”

Peel Hunt analysts said the Joules website was offering heavy discounts on a range of items “as the company focuses on cash generation”.

Meanwhile, the retailer Made.com is expected to fall into administration after failing to find a buyer.

One of the company’s founders has revealed that he tried to buy the online business but was rejected by PwC administrators.

Ning Li, who launched the online sofa business with Brent Hoberman and others in 2010, wrote a letter to staff to say he “really tried” to save their jobs.

“Unfortunately, my proposal wasn’t accepted. Apparently it would be preferable to break the company up and sell it in pieces to generate a little more cash. It makes no sense to me. But I wanted you to know that I really tried.”

Next has been tipped as a possible purchaser.

Read more:
Joules sounds the alarm over possible loan default as it calls on investors for emergency funding

0
FacebookTwitterGoogle +Pinterest
previous post
Energy windfall tax a ‘disaster’ for small North Sea producers
next post
Number of restaurants and food outlets entering liquidation up by almost 50%

You may also like

Will force majeure clauses strike the right chord...

January 27, 2023

A Conversation with Seton Noble on Ambition, Impact,...

September 17, 2024

Quantum Computing: Revolution in Solving Complex Problems

December 17, 2024

Elon Musk Drops Lawsuit Against OpenAI

June 12, 2024

Google Play Store Introduces New Features

October 4, 2023

UK’s budding entrepreneurs stifled by cost of living...

December 21, 2023

Northern Ireland economy expected to shrink next year

December 9, 2022

Jeremy Hunt urged to tackle sickness and later...

October 22, 2023

Empowering Small Businesses: 5 Reasons High-Speed Connectivity is...

April 24, 2024

Brexit a major cause of UK’s return to...

November 15, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved