British retailer Joules Group Plc has had disappointing deals over the past few weeks but is still hoping for a new investor. This emerges from an interim report that the company published on Monday.
In the 11 weeks to Oct. 30, sales performance “fell short of the group’s expectations,” the retailer acknowledged. This is “due in large part to the difficult economic environment in the UK, which negatively impacted customer confidence and disposable incomes.” In addition, demand in “key categories such as outerwear, rubber boots and knitwear” also suffered from the “unexpectedly mild weather”.
In its restructuring efforts, however, the group sees itself on course. The implementation of the current turnaround plan has made “good progress”, according to a statement. The simplification of the wholesale business with the withdrawal from the European Union and the USA was “almost complete”. In addition, the company has streamlined its personnel structure and reformed its production and purchasing models. The retailer emphasized that the targeted “cost optimisations” would be fully implemented by December. Under the direction of company founder and product director Tom Joule, a “new design and development process” was introduced to improve the quality of the range.
After the failure of financing negotiations with the clothing supplier Next Plc, the troubled group is still looking for investors for a planned capital increase. The company is “in advanced discussions with a number of strategic investors, including Tom Joule,” the statement said. At the same time, the management is also pushing “alternative options”.