Car dealer snaps up stake in Joules as he suggests throwing retailer a life line

Multimillionaire car investor Richard Teatum has amped up his stake in Joules, as he reportedly suggested buying up even more shares in the struggling fashion retailer.

Teatum, the owner of the Stoneacre Motor Group, had told The Times that he was also hoping to meet founder of the British group, Tom Joule, “pretty soon” as he revealed he was mulling another stake increase.

Joule returned to the business in September, after stepping down in 2015, in order to support its ongoing turnaround plan, through which it is striving for better profitability and rejuvenated product categories.

As disclosed in a regulatory filing, Teatum has built up an 8.9 percent stake in the retailer, boosted by his recent purchase of shares worth around one million pounds.

The company has been at the centre of significant financial troubles over the past year, with it citing various macroeconomic issues as the cause of its current state of affairs.

After takeover talks with British high street retailer Next fell through last month, Joules confirmed yesterday that it had been contemplating various options to save it from collapse, noting that a CVA was a potential alternative.

Next ended discussions with the group after its share price dropped following a profit warning published in August.

However, Teatum could be the group’s unlikely saviour as he has continued to express an interest in supporting the company.

Speaking to This is Money, the investor said Joules shares were “massively undervalued” and he would continue buying as he believed that long-term it would be a “fantastic investment”.

While Joules had declined to comment on the situation, the businessman did state he had received a letter inviting him to meet the retailer’s board.