Joules, the struggling British fashion retailer, has announced its decision to appoint administrators after failed rescue talks. The company has enlisted the help of Interpath Advisory Limited, specifically Will Wright, Ryan Grant, and Chris Pole, to oversee the administration process. In addition, The Garden Trading Company, which Joules acquired two years ago, will also be filing for administration.

Just a week ago, Joules had disclosed that it was engaged in advanced discussions with strategic investors to facilitate an equity raise process. The retailer had also mentioned ongoing talks regarding a bridge financing proposal that would support its refinancing plans. However, the company has now confirmed that these discussions with various parties have been unsuccessful and have been brought to an end.

This recent setback adds to Joules’ existing challenges, including supply chain issues and internal problems. Back in September, the retailer faced a significant disappointment when discussions with potential buyer Next fell through. Next had been considering purchasing a 25% stake in Joules at the current share price, but as the share price declined, Next withdrew its interest. Consequently, Joules’ shares are now suspended from trading on the London Stock Exchange.

The decision to file for administration has been made in order to protect the interests of Joules’ creditors. However, the exact timing of the administration filing and whether a ‘pre-pack’ buyer will be involved have not been disclosed. This lack of clarity puts the jobs of the company’s 1,600 employees at risk. Furthermore, it is expected that some of Joules’ more than 130 stores in the UK may need to close, although no official statement has been provided regarding this matter. The impact of the administration filing on Joules’ operations in Europe and the US remains uncertain.

For more information on Joules and its administration filing, please visit the following links:
Joules Official Website
BBC News Article on Joules’ Administration Filing