British brand Joules was over £100m in debt when the company filed for bankruptcy earlier this year, new documents show.
Debtors included retail creditors, HM Revenue and Customs (a UK agency responsible for collecting taxes and paying some forms of government support, among other things) and Joules gift card holders, news outlet Business Insider reports . In total, the brand owed nearly £114 million, according to a statement of affairs released by Companies House (the UK government’s executive agency that keeps the company register).
Joules filed for bankruptcy in November after a bailout investment with retail giant Next fell through after a profit warning from Joules caused its share price to fall.
rescue operation
In December, Next announced it would acquire a majority stake in Joules through a newly formed company for £34million in cash.
In a regulatory filing, Next said it had teamed up with Tom Joule, Joules’ founder, to help the company out of bankruptcy. Under the terms of the agreement, Next will own 74 percent of the share capital, with the remaining 26 percent held by Joule.
Next announced at the time that it would close 19 Joules stores, but added that most Joules employees would remain with the company. Next said it would continue to operate a “significant number” of Joules stores – around 100 of the current 124 – in the UK and Ireland. Next also said Joules will maintain its managerial autonomy and creative independence, and will operate its own board from its Market Harborough office. Additionally, the retailer plans to port Joules to its Next Total Platform by early 2024, giving the brand access to its delivery and customer services.
This translated and edited post previously appeared on FashionUnited.uk.