// Joules has appointed KPMG debt advisory to help shore up its cash position
// The retailer says the “group continues to focus on improving profitability, cash generation and liquidity headroom.”
Joules has called in advisers from KPMG to help shore up its cash position.
The struggling fashion and lifestyle retailer is seeking the cash lifeline as the cost-of-living crisis hits the high street.
According to The Sunday Times, consultants from KPMG’s debt advisory practice are exploring options, including raising fresh capital, after inflationary pressures drained the retailer’s cash reserves.
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The firm said that it “continues to focus on improving profitability, cash generation and liquidity headroom”.
“As at 29 May, the group had net debt of £21.4m, giving £11.3m headroom within its banking facilities, in line with the board’s expectations,” the retailer said.
“Whilst the group continues to manage its cash resources carefully over its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements over this time.
“The group is making good progress against previously announced key initiatives aimed at simplifying the business and optimising the cost base to improve long-term profitability.
“This includes implementing significant changes to its wholesale operations to focus on fewer, profitable wholesale accounts and improving and simplifying the group’s end-to-end product process to reduce costs and shorten lead times.”