Joules in talks with founder over emergency funds

FASHION chain Joules is in discussions with its founder over an emergency cash injection as a deadline to repay a £5m loan due later this month looms.

Joules said talks with Tom Joule were at an advanced stage over a cornerstone investment in a funding round, although no deal is certain.

The retailer is also speaking to other strategic investors over an investment and is still considering a company voluntary arrangement, which would see it open negotiations with landlords about slashing its rent bills.

Crisis talks have begun after disappointing recent trading left it at risk of missing its loan repayment deadline.

Joules said a blow to disposable income among its customers and weaker consumer confidence meant sales were below expectations for the 11 weeks to Oct 30. Fewer people visited its website to buy clothes while an increase in discounting across the industry forced Joules to put more items on sale, which squeezed margins.

Cash reserves have been run down and, as it stands, the business will be unable to repay a £5m loan this month.