// Next has walked away from talks to buy a 25% stake in Joules
// The retailer, which hired KPMG earlier this summer as it seeks a cash lifeline, is considering alternative financing options, including a possible equity raise
Next has ended its talks to acquire a stake in struggling fashion retailer Joules.
Joules confirmed in early August that it was in discussions with retail giant Next, which was looking to take a 25% stake for £15 million.
However, it was reported that the deal was in doubt after Joules’ share price took a dip following a profit warning last month.
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Despite the talks ending, Joules said it was still in discussions with Next’s over adopting its Next Total Platform online services.
It said that it had “an ongoing positive relationship with Next” and continues to sell through its Label online store.
The breakdown in talks will come as a blow to Joules, which hired KPMG earlier this summer as it sought a cash lifeline.
The retailer said it would continue to “assess its ongoing financing requirements and is considering alternative options, including a possible equity raise” to shore up its balance sheet.
As the retailer presses ahead with its turnaround, it revealed that founder Tom Joule, currently a non-executive director, would return to in an executive capacity to oversee its product offer.
Joules, which last month hired ex-John Lewis director Jonathon Brown as chief executive, is focusing on boosting profitability through better pricing and promotions, more profitable product categories, and cost control to turnaround the struggling lifestyle business.
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