Joules, the struggling fashion retailer, is reportedly considering a company voluntary arrangement (CVA) in an attempt to alleviate financial pressures and avoid collapse. After failed talks with Next about a potential stake acquisition, Joules is now exploring alternative measures with the assistance of Interpath Advisory. These measures could potentially involve store closures, rent reductions, and job cuts. While no final decision has been reached, sources indicate that under the leadership of CEO Jonathon Brown, Joules is seriously considering the CVA option.

Currently operating approximately 130 stores alongside an online platform, Joules employs over 1,000 staff members. In September, the company announced its assessment of ongoing financial needs and the exploration of various options. Despite the possibility of an equity raise, industry analysts express skepticism regarding feasibility due to Joules’ well-known challenges and declining share price. Initially, the potential investment from Next inspired hope, but due to the incessant decline in share price, Next withdrew from the deal.

Joules has yet to comment on the reports regarding the potential CVA. If the company decides to proceed with this action, approval from its creditors will be necessary to implement its restructuring plans.

Useful links:
1. BBC: Joules considers rescue deal to avoid collapse
2. The Guardian: Joules explores CVA as Next stake deal collapses