In a potentially significant turn of events, UK fashion retailer Joules may have found a lifeline in the form of millionaire car dealer Richard Teatum. Teatum has recently acquired an 8.9% stake in Joules and has not ruled out the possibility of increasing his investment further. Describing the opportunity as “fantastic,” Teatum has expressed a keen interest in meeting with Tom Joule, the founder of Joules and the company’s largest shareholder.

Teatum’s acquisition of the stake cost him approximately £1 million, a move he believes to be a smart long-term investment as he perceives Joules to be undervalued. The purchase has been made public through a regulatory filing, and Teatum has confirmed that he has been invited to discuss his investment with the company’s board. On the other hand, Joules has chosen to remain tight-lipped on Teatum’s stake-building activities.

It is worth noting that Teatum, primarily known for owning the Stoneacre Motor Group, has a reputable track record as an investor in the stock market. However, this is his first foray into the clothing retail sector, indicating his confidence in Joules’ potential.

Joules, already grappling with immediate financial challenges, suffered a setback last month when it failed to secure a £15 million investment from Next. As a result, the company is currently exploring various options to avoid collapse, including considering a company voluntary arrangement (CVA). While the pursuit of equity-raising possibilities from investors is still ongoing, a CVA remains one of the potential alternatives being weighed. Tom Joule, with a 21.7% ownership stake, initially took the business public in 2016, listing shares at 195p each. Although the stock enjoyed a high of 300p in the summer of 2021, it has since experienced a significant decline.

For more information on Joules’ recent challenges and potential solutions, you can visit the following links:

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