It has been revealed that Joules, the parent company of The Garden Trading Company and Joules Fashion Retailer are at risk of bankruptcy after failing to secure new investments.
Joules Group employs around 1,600 people and has requested that trading in its shares be suspended.
Joules shares have fallen 93% this year, from around 140p in January to 9p at the end of last week.
At Friday’s close of c9p, Joules was capitalised at just £10m, so its fall from grace has been alarming (the IPO price in May 2016 was 160p and it peaked at over 300p)
#JOUL which has around 1,700 staff, revealed it was to file a notice of intention to appoint administrators and had requested the suspension of trading in the company’s shares @Joulesclothing Its imminent demise follows that of #MADE the online-focused furniture brand, last week pic.twitter.com/vrXcUx0m9R
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“The company announced that it was in advanced talks with several strategic investors to provide a key investment in an equity raising process.
“The company also stated that it was in talks about a bridge financing proposal to allow for continued progress with the refinancing plans mentioned above.
It stated that the board confirmed that discussions with different parties were unsuccessful and had ended.
The Leicestershire-based company stated that it was protecting its creditors.
It has struggled against rising costs and declining sales, as consumer budgets are squeezed due to the highest inflation in 40 years.
Its imminent demise follows the fate of Made.com, an online furniture retailer that lost nearly 600 jobs last week.
Joules, a well-known brand for its wellies, has 130 UK locations and a few concessions. However, it also operates in Europe as the United States.
The group bought the Garden Trading Company last year, which sells outdoor products online, but also through stockists.
The company was racing against the clock to get more cash before the deadline to repay a loan of £5m at the end of the month.
It was talking to investors, including Tom Joule, its founder.
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