ICSM Business News: KPMG advisers called into high street retailer to bolster finances as shares fall by 20%
By Harry Mottram: A report in the Sunday Times (10th July, 2022) about the high street fashion retailer Joules appears to have spooked the market with their shares down 20% the following day.
In a report in the Mail’s This is Money by Camilla Canocchi it appears the retailer has appointed KPMG Advisers to boost funding to ensure stability. With the share price down 90% in a year concerns have mounted to the long term future of the business that has scores of shops across the UK selling upmarket fashion inspired originally by the founder Tom Joule.
This is Money noted: “The group insisted it still had enough cash for now and that debt levels remain within its banking agreements and as expected by management. At the end of May, it had access to £11.3million liquidity and net debt of £21.4million.”
They quoted The Sunday Times as saying Joules had called in KPMG to look at options, including a possible raise of fresh capital.
Joules reportedly told investors: 'Whilst the group continues to manage its cash resources carefully over its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements over this time. 'This includes implementing significant changes to its wholesale operations to focus on fewer, profitable wholesale accounts and improving and simplifying the group's end-to-end product process to reduce costs and shorten lead times.”
The company made a loss of £23million in 2020 said the Mail’s This Is Business, but last year ‘it swung back to profit, reporting pre-tax profits of £2million and sales of £199million.’
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