Joules says turnaround plan progressing well, working with Interpath Advisory

(Sharecast News) - Joules said its turnaround plan was progressing well, as it confirmed it is working with financial advisory firm Interpath Advisory following a Sky News report it is exploring a company voluntary arrangement (CVA).

Responding to press speculation, the fashion retailer said that its new leadership team, led by Jonathon Brown and supported by Tom Joule in an executive capacity as product director, is making "good progress" in developing its turnaround plan. This focuses on driving higher profitability including through: a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; and optimising the group's channel mix, it said.

"The company continues to make good progress on its simplification agenda and cost management process. Interpath Advisory is assisting the board with an initial assessment of certain elements as part of the development of this turnaround plan," it said.

"As previously announced on 13 September, the group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet. KPMG continues to support the group on its medium-term funding."

Joules said its full-year outlook remains unchanged.

Sky News had reported that Joules was working with Interpath Advisory on a CVA that would, if approved, pave the way for store closures, rent reductions and job cuts.

It cited a retail industry insider as saying that Joules had not yet formally decided to launch a CVA or restructuring plan - an alternative mechanism which allows troubled companies to renegotiate their liabilities - but was "seriously looking" at the possibility.

At 0815 BST, shares in the company were up 0.7% at 5.03p, having tanked late on Thursday following the Sky report.