The British lifestyle company Joules Group Plc. has confirmed that he is in talks with trading company Next plc. about a possible equity investment.
This follows a report from Sky News on Saturday that Next was in detailed negotiations to buy a 25 per cent stake in Joules.
Joules said in a statement on Sunday, “Joules confirms it is in discussions with Next Plc (“Next”) to acquire its Total Platform Services in support of the group’s long-term growth plans.”
“Joules also confirms that it is in discussions with Next for a potential equity investment that would bring Joules proceeds of approximately £15 million at a price not below Joules’ current market price, resulting in that Next would become a strategic minority shareholder of the group.”
The company added that the investment is subject to shareholder approval and that there is “no certainty” the talks will result in an agreement.
Important backing
Joules has been struggling lately. Last month, the company confirmed it had hired consultancy KPMG to improve the company’s profitability, liquidity and cash headroom.
This comes after a profit warning in May, in which the company said rising cost of living was impacting sales of its full-price range and garden products.
Earlier this month, Next raised its full-year profit guidance by £10m to £860m after better-than-expected sales in the second quarter of the year .
Sales in the full price segment increased by five percent compared to the previous year and were 50 million British pounds (59.2 million euros) above the previous forecast.
This article was previously published on FashionUnited.uk. Translation and editing: Barbara Russ