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Joules to shut 19 stores after Next buys brand at 11th hour

By Oliver Gill

HIGH street retailer Next has secured a last-minute deal to buy Joules, after gazumping the South African group behind Hobbs and Whistles to acquire the business out of bankruptcy.

The FTSE 100 company will take on 100 Joules stores as well as its head office in Market Harborough, Leicestershire, saving 1,450 jobs.

However, 19 stores will be closed with the loss of 133 jobs as part of a deal that Next put together with the company’s founder Tom Joule.

City sources said that Foschini Group, whose brands include Hobbs, Whistles and Phase Eight, had entered into exclusive talks with Joules’ administrators Interpath on Wednesday morning. But the period of exclusivity ended at 12pm.

Next, which is understood to have previously tabled a lower offer, then sweetened its offer on Wednesday afternoon to secure the deal.

Next will own a 74pc stake in the business after the deal, with Mr Joule owning the remaining 26pc share.

Mr Joule said: “After three years away from the operational side, I’m truly looking forward to inspiring teams with clear direction to excite and recapture the imagination of the customer again.

“I’m so pleased that we have been able to strike a deal that protects the future of the company for all its loyal customers, its employees and also for the town of Market Harborough, which have been so central to Joules’ success.”

Joules was founded in 1989 by Mr Joule with “one man, one tent and a lot of enthusiasm”. The business floated in 2016 for £140m after finding a niche in colourful clothing and wellington boots.

Administrators from Interpath were called in last November after executives failed to secure emergency investment.

Its administration came hot on the heels of Made.com’s bankruptcy as high street retailers grapple with headwinds amid the cost of living crisis.

Business

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Daily Telegraph