LONDON (Reuters) – The board of British clothing company Joules plans to appoint administrators after failing to find a new investor, becoming the latest retailer to face collapse as shoppers tighten their belts.
Joules tried to secure new financing last week after a mild autumn meant low sales of coats, Wellington boots and wooly jumpers but it said on Monday talks had failed and it intended to appoint administrators from Interpath Advisory.
Britain’s high street is struggling as soaring household bills squeeze discretionary spend. Last week, online furniture seller Made.com also appointed administrators, resulting in 400 job losses.
The number of company insolvencies in England and Wales hit its highest level in the April-June period in nearly 13 years as surging energy prices took their toll on business, data showed last month.
Joules had hoped that Next, one of Britain’s biggest clothes retailers which ended up buying Made.com’s brand, would invest in the company to help with its turnaround, but a deal could not be reached.
Shares in Joules, which is listed on the AIM junior market, would be suspended and a further announcement would be made in due course.
(Reporting by Sarah Young; editing by James Davey)
