Talks between Next and fashion brand Joules over £15m investment stall, according to reports
Impasse: City sources said Next has not received enough financial information from Joules to proceed
Talks between Next and ‘yummy mummy’ fashion brand Joules over a £15m investment have stalled, according to reports.
The retailer was in discussions this month to take a 25 per cent stake in Joules but a fresh profit warning has seen its value crash.
Its shares are worth just 25.5p each, well below the 33p when talks emerged.
It is also valued at less than £30m, meaning Next’s mooted deal would be worth more than half the company.
A source told Sky News there was ‘no way’ Next boss Lord Wolfson would pay a premium to invest in the business.
City sources also said Next has not received enough financial information from Joules to proceed.
The investment would have been a lifeline for the Leicestershire-based brand which has been struggling with disappointing sales.
Joules, which has around 130 stores, insisted ‘positive discussions’ with Next are ongoing.