Joules Appoints Directors After Bailout Talks Fail By Investing.com
By Geoffrey Smith
Investing.com — British fashion group Joules (LON:) on Monday announced plans to appoint directors as it ran out of bailout options.
Thus, the company’s shares will cease to be traded on the London Stock Exchange from Monday.
This year, Joules had inevitably over-ordered new collections of its usually popular outerwear, not anticipating slowing consumer demand in its key UK market due to soaring prices. In addition, persistent bottlenecks in shipping markets early in the year had thwarted its plans to penetrate the US market, forcing it to absorb much higher freight costs.
Joules had turned to its founder Tom Joule as a measure of last resort, having previously failed to persuade the main street stalwart Next (LON:) to inject new equity and also not to convince its bankers to extend a revolving credit facility which matures at the end of the month.
“The Board confirms that these discussions with various parties have not been successful and are now complete,” he said in a brief statement.
The company is one of the hottest names in London following the impending recession in the UK fell in the third quarter and is expected to continue falling through the winter.