Retailing giant Next has teamed up with the founder of collapsed fashion chain Joules to rescue it from administration in a deal that will save about 100 shops and approximately 1,450 jobs.
Administrators at Interpath Advisory have brokered the sale after Next reportedly submitted a last-minute £41 million bid in the early hours of Thursday morning. Next has taken a 74 per cent stake, with founder Tom Joule taking the remaining 26%.
However, 19 stores are not part of the transaction and will close with immediate effect with the loss of 133 jobs. Among those closing down is the Joules shop in Edinburgh's George Street, one of the group's nine stores in Scotland.
READ MORE: Scottish jobs at risk as retailer Joules on brink of failure
Will Wright, head of restructuring at Interpath Advisory and joint administrator, said: “Following a highly competitive process, we are pleased to have concluded this transaction which secures the future of this great British brand, as well as safeguarding a significant number of jobs.
"To have achieved this in such a short timetable is testament to the support we’ve received from employees, suppliers and other key stakeholders throughout the administration process, so we’d like to express our profound thanks to everyone involved.”
READ MORE: Cracks appear at major retailers as winter loom
Will Wright, Ryan Grant and Chris Pole from Interpath Advisory were appointed joint administrators last month after Joules failed to secure emergency funding. Best known for its jackets and patterned wellington boots, trading at Joules fell short of expectations during the 11 weeks to October 30 as the mild start to winter exacerbated tough trading conditions amid the economic downturn.
Joules’ website will be switched over to Next’s Total Platform operation, which already provides services for brands such as Gap and Victoria’s Secret. As part of the deal, Next has also purchased the Joules head office in Market Harborough, Leicestershire.
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