Workers at Aberdeen and Inverness’s Joules stores face an uncertain future with the fashion retailer facing collapse.
The Leicestershire-based company has said it plans to appoint administrators in a move that could put about 1,600 jobs at risk.
The clothing and homeware group has a store in Aberdeen’s Union Square and Inverness’s Eastgate Shopping Centre.
A spokeswoman for Joules confirmed that “all stores are operating as usual” since the announcement but declined to comment on individual stores.
It’s understood 10 jobs, a mixture of full and part-time, are under-threat at the Union Square branch. It is not known how many staff work at the Inverness store.
The brand – famous for its posh wellies – said talks over an emergency cash-call with investors including its founder Tom Joule were unsuccessful and have ended.
As well as the Joules stores and online business, the Joules Group also runs the online-only Garden Trading Company.
‘Deeply disappointing’ & ‘sad day’
Mr Joule said: “Today is a deeply disappointing day for Joules, and a sad day for me personally.
“Since the brand’s early days of selling at country shows across the UK, we have always enjoyed a special relationship with our customers, and that hasn’t changed, as is demonstrated by our healthy brand indicators.
“However, we recognise our business has become too complex and our model today is not aligned to succeed in the current, tough trading environment.
“Over the last two months I have been back working as part of the new executive leadership team to simplify the business and improve operations.
“Whilst we have made significant progress during this period, regrettably we simply could not make the required changes to the model quickly enough in this challenging environment.
“For our stakeholders, including our customers and our people, we recognise today’s news will be deeply unsettling, and we are sorry for this. However, we would like to reassure everyone it remains business as usual right now.
“It is my hope to be able to continue to play an important role in creating Joules products for our customers that reflect our brand and values.
“It is my strong belief that Joules remains a desirable, differentiated brand that, with the right model and structure, can thrive again.”
Administrator to be appointed
Joules, which has more than 130 shops, said it would file a notice of intention to appoint Interpath Advisory as administrators to the firm and its subsidiaries, including online home and garden retailer The Garden Trading Company, “as soon as reasonably practicable”.
Joules said: “The board is taking this action to protect the interests of its creditors.”
Trading of the firm’s shares on the stock market have been suspended due to the decision, adding that further announcements will be made “in due course”.
It is expected to formally appoint administrators in the next five to 10 working days.
A spokeswoman for Joules said: “I’m afraid we’re not able to comment on any specific stores, however, all stores are operating as usual.”
Cost of living effect
Staff at both Union Square and Eastgate Shopping Centre declined to comment.
Joules was founded by Tom Joule, and started out selling clothes at country shows in 1989.
It is the latest high street retailer to face problems as retailers cut back on spending due to the cost of living crisis.
Marks & Spencer is accelerating the closure of 68 shops with the future of the Aberdeen and Inverness shops in the balance.
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