Joules insists 'positive' talks with Next continue

Joules said on Tuesday that it remains in "positive" discussions with Next about adopting its Total Platform services to support its long-term growth plans and a potential equity investment.

The company, which first announced the talks earlier this month, said there can be no certainty the discussions will lead to any agreement, and that further announcements will be made if and when appropriate.

Joules was responding to a Sky News report over the weekend suggesting the struggling fashion chain’s talks with Next had hit a stumbling block following a profit warning.

Sky said the two companies were not close to agreeing the terms of an investment from Next, more than three weeks after confirming talks. It cited City sources as saying that Next had not received sufficient financial information to enable it to make a formal proposal to the Joules board.

There were also doubts that Next would be prepared to proceed with a deal at 33p-a-share or more - Joules' valuation when the talks were revealed by Sky News earlier this month.

AJ Bell investment director Russ Mould said: "Posh wellies seller Joules’ latest update - effectively decrying media reports that an agreement with Next for the larger retailer to invest in the business was breaking down - shows the desperation of its situation.

"Businesses like Joules, which are neither luxury brands nor bargain basement propositions and sell discretionary items, look particularly vulnerable against a highly squeezed consumer backdrop."