New Oban store at risk as Joules calls in administrators

Joules is to appoint administrators after the UK clothing brand failed to find an investor to save the business, in a move that could put 1,600 jobs at risk.

 

The retailer, which opened a new store on Oban's George Street just last year, had been in talks with investors to raise emergency funds after a turbulent period for the chain.

 

'Discussions with various parties have not been successful and have now terminated,' Joules said on Monday.

 

It is filing a notice of intention to appoint administrators 'as soon as reasonably practicable', the group said in a statement. The move gave the company 10 days of breathing space to find a buyer.

 

Joules’ founder Tom Joule, who started out selling clothes at country shows in Leicestershire in 1989, said the news was 'deeply disappointing' and 'a sad day for me personally'.

 

'We would like to reassure everyone it remains business as usual right now.

 

'It is my strong belief that Joules remains a desirable, differentiated brand that, with the right model and structure, can thrive again.'

 

The retailer, which sells colourful clothing and homeware inspired by British country lifestyles, has 132 shops including nine in Scotland.

 

As well as the Joules stores and online business, the Joules Group also runs the online-only Garden Trading Company.

 

The group struggled to stay profitable, having previously warned of higher freight rates, wage costs, and a slump in consumer spending amid the soaring cost of living.

 

Announcing disappointing trading last week, Joules said this was largely due to 'the challenging UK economic environment which has negatively impacted consumer confidence and disposable income'.

 

Many retailers have been struggling as consumers cut spending. Last week, furniture retailer Made.com fell into administration, leading to hundreds of job losses. It was acquired by High Street giant Next.