The action was suspended on the London market following the announcement on Monday.
British clothing company Joules is set to file for bankruptcy after running out of cash as the cost of living crisis prompted consumers to cut spending in the face of inflation. In a statement Monday, Joules said it failed to raise funds from investors and failed to secure a bridging loan.
“With regret“, the board of directors announced its intention to appoint three directors of the firm Interpath Advisory Limited, in order to “protect the interest of creditors“. The company currently employs 1,600 people, whose jobs are threatened, and has 132 stores, a spokesman told AFP. The action was suspended on the London market.
“Joules is the latest casualty of the UK retail crisis amid a purchasing power crisis“Comments Victoria Scholar, an analyst at Interactive Investors, who recalls that last week the furniture e-commerce company Made.com also went bankrupt. Inflation has reached 10% in the country and rising costs are weighing on business activity and indicators of confidence in the economy. The UK saw its gross domestic product shrink in the third quarter and the Bank of England is predicting a recession that could be the longest known in the country.
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Susannah Streeter, an analyst at Hargreaves Lansdown, points out that the brand specializing in outdoor and countryside clothing, and famous for its colorful rain boots, may also have suffered from the unusually warm weather this autumn but “Joules would have weathered this storm better if its product line had been more diverse and if its design teams had better followed trends.“.