// Joules has been working with Interpath Advisory to discuss using a CVA
// Administration or a CVA could be a possibility in order to pay debts to its creditors
Joules has admitted that it a CVA is one of the options it is exploring as it seeks to turn its fortunes around.
The lifestyle retailer, which has been working with Interpath Advisory, said: “As previously announced, the group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet and provide a strong platform to support the turnaround plan.
“Whilst this remains the board’s focus, the company also continues to consider a range of other potential options which may be available to it, where a CVA is one of a number of such alternatives, and notes it has not determined if such alternatives are required.
Joules was in advanced negotiations regarding a sale of 25% of the business to Next for £15 million, however, the fashion giant ended the talks late last month.
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Joules, which appointed ex-John Lewis director Jonathon Brown as its new CEO during the summer, said it was making “good progress” with its turnaround plan.
It’s plan focuses on driving higher profitability through a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; and optimising its channel mix.
The lifestyle retailer flagged in August that it expects to make a “significant loss” in its first half following “softness in trading”.
Joules had warned in early summer that it was experiencing significant pressure on gross margins as consumers were opting to buy items on mark-downs in a heavily promotional environment.
It expects to deliver a full-year loss for its current financial year.
