Leicestershire (Reuters) Nov,14- About 1,600 jobs could be at risk when clothing giant Joules becomes the latest victim of tough retail times. The Leicestershire-based company, which has 132 stores, said it intends to appoint a manager after failing to secure an emergency investment. Joules said last week that recent sales have been weaker than expected. Joule started the company with “one man, a tent and a lot of enthusiasm,” but demand for something more colorful alongside the standard tweed garments worn at such events grew with time. In addition to its Joules store and online business, Joules Group also operates an online-only Garden Trading Company. Jules announced the unexpected deal last week, which he said was largely due to “the challenging economic environment in the UK, which has had a negative impact on consumer confidence and disposable incomes.” He also said sales of “outerwear, boots and knitwear” were hit by milder-than-expected weather, as household prices rose at the fastest pace in his 40 years, putting pressure on consumer spending. is causing problems for the entire retail industry. “No one is immune from the challenges facing retail,” said retail analyst Natalie Berg, Tamara Sender Ceron, deputy head of fashion retail at research firm Mintel. According to a survey, 41% of clothing shoppers have switched to cheaper retailers in the past year. Retailers like Joules are particularly vulnerable to changing shopping arrangement as their customer base includes many families squeezed by rising costs of living, she said. Sender Ceron also said Joules “had too many stores for the current way of shopping.” It was too late to improve its offering, he added. Even regular customers started falling in love with florals and fashion staples.” Streeter also noted that Jules’ repeated price cuts meant that “customers were waiting for a red sticker instead of paying full price.
Joules said last week that the company was in “preliminary talks” with a number of strategic investors, including founder Tom Joule, but on Monday said those fell apart. The company said it had decided to file a letter of intent to appoint a manager “as soon as it becomes reasonably practicable.” “The Board is taking this action to protect the interests of creditors,” he added.
Joules Group also said it would suspend trading in its shares. The company was listed on London’s Junior Stock Exchange Aim in 2016 at a valuation of his £140m at the time. However, the share has fallen by more than 95% over the past year, trading at around 9 pence on Friday, with the company valued at just over £10m.
