- Joules has filed a notice of intention to appoint Interpath Advisory Limited as administrators to the Company, “as soon as reasonably practicable”.
- Hot weather and cost-of-living crisis a factor, but Joules has been dropping behind in the fashion stakes.
- There is likely to be significant interest in acquiring the name and the company’s intellectual property.
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown:
‘’It’s not just the cut-back in non-essential spending by consumer which have caused Joules’ woes. Hot weather put a big dent in its core range of jackets and wellies, but Joules might have weathered this particular storm if it’s product ranges had been better diversified and the design teams had kept up with the trends. The apparel retailer, once the darling of the outdoor set, had become stuck in a rut – as athleisure wear took over as the casual clothes for the younger generation and even Joules’ core customers, started falling out of love with the staples of its floral and fashion ranges. It can be hard for a brand based on British heritage to move with the times, but Joules’ demise shows, fast moving fashion trends can cause serious damage to slow coaches. The effect of consumers tightening their belts will have caused deeper damage to the company’s furniture and accessories business Garden Trading, as spending on revamped rooms and outdoor spaces has been cut back. Joules repeated discounting also arguably damaged the brand, with customers likely to have been holding out for red stickers rather than taking the full price plunge. The Joules brand is still strong, and although it will need a modern twist to help it survive longer term, there is likely to be significant interest in the name and the intellectual property. ‘’
