// Joules has confirmed that it is in discussions with Next, which is interested in taking a minority stake in the business
// Next would become a strategic minority shareholder in Joules, which would join the fashion giant’s Total Platform business
Struggling fashion retailer Joules has confirmed that it is in talks with Next, which is interested in acquiring a minority stake in the lifestyle retailer for around £15m.
It comes after Sky News reported that Next has been in negotiations for “several weeks” to acquire 25% of Joules.
Joules has confirmed that discussions over a “potential equity investment” are underway, which would raise around £15m, at no less than Joules’ current market price.
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This would mean fashion giant Next would become a strategic minority shareholder in the retailer.
Joules would also adopt Next’s Total Platform services “to support the group’s long term growth plans”.
The equity investment would be subject to approval by Joules’ shareholders.
“There can be no certainty these discussions will lead to any agreement. A further announcement will be made if and when appropriate,” it concluded.
Joules has struggled with rising costs and a slowdown in consumer confidence in recent months as the UK high street struggles with historic levels of inflation.
Last month the lifestyle retailer called in KPMG to seek a cash lifeline as the cost-of-living crisis hits the high street.
It said consumers feeling the pinch had intensified pressures on margins with gross margins having “remained under significant pressure”.
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