ICSM Business News: KPMG advisers called into high street retailer to bolster finances as shares fall by 20%

ICSM Business News: KPMG advisers called into high street retailer to bolster finances as shares fall by 20%

By Harry Mottram: A report in the Sunday Times (10th July, 2022) about the high street fashion retailer Joules appears to have spooked the market with their shares down 20% the following day.

In a report in the Mail’s This is Money by Camilla Canocchi it appears the retailer has appointed KPMG Advisers to boost funding to ensure stability. With the share price down 90% in a year concerns have mounted to the long term future of the business that has scores of shops across the UK selling upmarket fashion inspired originally by the founder Tom Joule.

This is Money noted: “The group insisted it still had enough cash for now and that debt levels remain within its banking agreements and as expected by management. At the end of May, it had access to £11.3million liquidity and net debt of £21.4million.”

They quoted The Sunday Times as saying Joules had called in KPMG to look at options, including a possible raise of fresh capital.

Joules reportedly told investors: 'Whilst the group continues to manage its cash resources carefully over its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements over this time. 'This includes implementing significant changes to its wholesale operations to focus on fewer, profitable wholesale accounts and improving and simplifying the group's end-to-end product process to reduce costs and shorten lead times.”

The company made a loss of £23million in 2020 said the Mail’s This Is Business, but last year ‘it swung back to profit, reporting pre-tax profits of £2million and sales of £199million.’

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk

Tel 0844 854 1850 ___ Fax 01454 327 355
Privacy Policy   © ICSM All Rights Reserved