// Joules responds to rumours of a potential CVA
// Joules is working with Interpath Advisory on an insolvency plan
Joules has responded to rumours of a potential CVA as it focuses on its turnaround strategy.
The retailer said that Interpath Advisory is “assisting the board with an initial assessment of certain elements as part of the development of this turnaround plan”.
It added: “As previously announced on 13 September, the group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet. KPMG continues to support the group on its medium-term funding.”
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Sky News had reported on Thursday that Joules and Interpath were contemplating a CVA that could lead to store closures and job cuts, if approved.
The media outlet added that Joules had not formally launched a CVA or restructuring plan but was “seriously looking” at the possibility.
Joules confirmed that its new leadership team, led by CEO Jonathon Brown and supported by founder Tom Joule in an executive capacity as product director, is “making good progress” in developing its turnaround plan which focuses on driving higher profitability.
The plan includes a better pricing and promotional strategy, focusing on more profitable product categories with shorter time to market, and optimising its channel mix.
Joules confirmed that its full-year outlook is unchanged and it plans to unveil its full-year results in November.
Joules, which employs more than 1,000 people and trades from about 130 stores, said earlier this month that it continued “to assess its ongoing financing requirements and is considering alternative options, including a possible equity raise, to allow the company to strengthen its balance sheet”.
