Joules owed almost 114 million pounds prior to collapse

British fashion and lifestyle brand Joules owed over 100 million pounds when it fell into administration earlier this year, new documents suggest.

Trade creditors, HMRC, and Joules gift card holders were among those owed money, Business Insider reports.

The heritage brand owed nearly 114 million pounds in total, according to a “statement of affairs” published at Companies House.

Joules collapsed into administration in November after a rescue investment deal with high street giant Next fell through when a profit warning issued by Joules resulted in its share price falling.

Rescue deal

Fast forward to December and Next announced it would acquire a majority stake in Joules for 34 million pounds in cash through a newly formed company.

In a regulatory filing, Next said it had partnered with Joules’ founder Tom Joule to acquire the company out of administration. The agreement would see Next own 74 percent of the equity, with the remaining 26 percent to be owned by Joule.

Next said at the time it would close 19 Joules stores, but added that most Joules staff would remain with the business.

It said it plans to continue operating a “significant number” of Joules’ stores - around 100 of its current 124 - in the UK and Ireland.

Next also said Joules would retain its management autonomy and creative independence, as well as operate its own board of directors from its base in Market Harborough.

Additionally, by early 2024, the retailer plans to migrate Joules onto its Next Total Platform, allowing the brand access to its delivery and customer service experiences.