// The Foschini Group has written to Interpath Advisory to protest the sale of Joules to Next, Sky News reports
// TFG claims the lawyers may have breached rules of the Solicitors Regulation Authority
Hobbs owner The Foschini Group has written to Joules administrators Interpath Advisory in protest of its decision to sell the country-lifestyle retailer to Next.
The group, which also owns Phase Eight had been close to a deal to purchase the retailer last month but was edged out by Next less than 24 hours later.
The embattled fashion retailer appointed Interpath Advisory after it fell into administration in November as it struggled to recover from supply chain challenges and weakened consumer demand.
TFG is understood to have written to the lawyers who worked on the sale to suggest they may have acted in breach of rules overseen by the Solicitors Regulation Authority, Sky News reported.
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TFG is said to be looking to recover the costs incurred by the unsuccessful bid of Joules.
City sources told Sky News that the group could launch a formal complaint of Interpath Advisory’s conduct to the Institute of Chartered Accountants for England and Wales.
A spokesperson for Interpath Advisory said: “We stand by the process which was run and reject any notion of unfairness.
“TFG were granted a period of exclusivity in which they had the opportunity to conclude a transaction.
“Despite our best efforts, they were unable to do so within this timeframe.
“Thereafter, a materially better offer for the business was received, which the joint administrators concluded represented the best outcome for the Company’s creditors.
“In line with their statutory duties, they accepted this offer and went on to conclude the transaction in short order, improving the outcome for creditors and preserving circa 1,400 jobs and over 100 stores.”
Next purchased Joules in a £34 million deal with the retailer’s founder, Tom Joule.
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