Jobs under threat as Joules, with branches in Lymington and Ringwood, set for administration

JOBS at New Forest branches of a nationwide fashion chain are under threat with it set to call in administrators.

Joules, which has outlets in Lymington and Ringwood, said talks over an emergency cash-call with investors including founder Tom Joule were unsuccessful and have ended.

Famous for its high-end wellies, the brand said it would file a notice of intention to appoint Interpath Advisory as administrators “as soon as reasonably practicable”.

Joules said: “The board is taking this action to protect the interests of its creditors.”

The firm will suspend trading of shares, 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, but stressed its stores and websites are continuing to trade as normal.

The Leicestershire-based chain employs around 1,600 staff and has more than 130 shops, including outlets on Lymington's High Street and The Furlong in Ringwood.

Joules is the latest retailer to hit the buffers after online furniture business Made.com collapsed last week, with rival Next buying up its brand, websites and intellectual property.

The deal led to 320 redundancies at Made, while a further 79 employees who had already resigned and were working out their notice were forced to leave the business immediately.

Next had also been in talks with Joules over a deal to buy a minority stake in the business, but discussions between the two collapsed in September.

Joules then revealed it was in talks over a so-called cornerstone equity raise with strategic investors including Mr Joule – who recently returned to the firm in an executive position as product director.

It was also holding discussions with Mr Joule and its lender over a possible bridge financing deal to allow the funding talks to continue, but failed to secure the crucial strategic investment needed.

At the same time, the group was considering the option of a company voluntary arrangement (CVA) – which typically involves a firm agreeing delayed or reduced payments to landlords or other creditors – as part of a restructuring to turn around its fortunes.

It has suffered a slump in shares over the past year following profit warnings amid soaring costs and a downturn in consumer spending.

Mr Joule founded the firm in 1989, when he began selling clothing on a stand at a country show in Leicestershire.