The Foschini Group, which also owns Hobbs and Whistles, is in advanced negotiations to acquire around three-quarters of Joules’ stores.
The administrator of the bankrupt fashion store Joules is close to reaching a rescue agreement with the South African owner of Phase Eight.
The Foschini Group (TFG) is nearing a deal to purchase the majority of Joules’ stores and assets.
According to one insider, an agreement might be reached as early as Wednesday afternoon.
If completed, it will likely result in the closure of around a fourth of Joules’ 132 stores and the loss of “several hundred” jobs.
Interpath Advisory, the administrator, refused to comment on a more accurate number of store closures and layoffs.
There is still a chance that an alternative bidder, such as Next or Mike Ashley’s Frasers Group, might outbid TFG in the end.
TFG, which also owns the women’s fashion labels Hobbs and Whistles, had been in conversation with Joules for several weeks before this month’s appointment of administrators about investing in the company.
Joules, headquartered in Market Harborough, Leicestershire, runs 132 locations around the United Kingdom and employs more than 1,600 people.
Throughout the administration process, its stores remained open.
This month, Will Wright, head of restructuring at Interpath and joint administrator, described Joules as “one of the most recognizable names on the high street, with a distinctive brand identity and loyal customers.”
We have received an avalanche of interest from interested parties.
“We will work diligently in the coming days to evaluate this interest, but we are sure that we will be able to secure a future for this great British brand.”
Earlier in the fall, Joules and Next had discussed a strategic investment, but they were unable to reach an agreement as the smaller company’s share price continued to decline.
It then hired Interpath to evaluate an insolvency procedure called a company voluntary arrangement, which would have allowed it to reduce its overhead expenses through store closures, rent reductions, and layoffs.
Joules stated in August that it hoped to seek a £15 million equity investment, following a warning that its loss would exceed market estimates.
It has appointed Jonathon Brown, a former executive at John Lewis and Kingfisher, as its new chief executive officer.
Joules has been listed on the London stock exchange since 2016, having been started in Leicestershire in 1989 by Tom Joule, who began selling clothing from a rural show booth.
TFG was unavailable for comment.
