Joules has admitted that it is considering a company voluntary arrangement (CVA) in order to pay debts to its suppliers.
The retailer, which operates a 130 strong retail presence across the UK and Ireland, could be forced to suspend its operations if it decides to go through with the process.
The group said it is continuing to assess its ongoing financing requirements, although it is making “good progress” with its turnaround plan to drive higher profitability.
However, Joules has now confirmed that, among its board’s consideration over a range of options to save it from collapse, a CVA is a potential alternative.
A challenging year
Up until last month, the British group was in advanced discussions with Next on the sale of 25 percent of its business in a 15 million pound deal.
The high street retailer pulled out of takeover talks after Joules’ share price took a turn following a profit warning in August.
According to a Sky News report, Next said that it had not yet received sufficient financial information in order to carry out a formal proposal.
Joules did confirm that it was still looking into potentially adopting the Next Total Platform, with discussions on this still ongoing.
In its new release, Joules added it was continuing to make good progress on its “simplification agenda and cost management process”.
The statement continued: “As previously announced, the group continues to assess its ongoing financing requirements, including a possible equity raise to allow the company to strengthen its balance sheet and provide a strong platform to support the turnaround plan.”
In September, Joules confirmed that its founder Tom Joule would be returning to lead its strategy and work alongside its newly appointed CEO, Jonathan Brown.
In the announcement, the company also noted that its outlook for the full year has remained unchanged.