Joules Confirms Next is Set to Take Strategic Stake

By Geoffrey Smith

Investing.com -- Joules (LON:JOUL) confirmed weekend reports on Monday that it is in talks with larger rival Next (LON:NXT) for the latter to take a strategic stake in the struggling British fashion chain.

Joules said it "is in discussions with Next about a potential equity investment raising proceeds for Joules of c.15 million pounds ($18 million) at no less than Joules' current market price, which would result in Next becoming a strategic minority shareholder in the Group."

At Friday's closing price, that money would buy Next a stake of nearly 30%, assuming no shares were issued to existing shareholders at the same time.

Next shares rose 0.15% at the open in response, while Joules shares leaped 42.42%.

Joules had warned last month that it was running out of headroom on its debt facilities, having overestimated demand for home and garden products in particular in its key U.K. market this year. Soaring inflation, driven by sharp rises in energy prices, has left Britons with less money for discretionary spending.

The talks with Next also include measures to broaden Joules' distribution by incorporating its goods into Next's Total Platform e-commerce channel.

Joules said there "can be no certainty these discussions will lead to any agreement" and added that a further announcement will be made if and when appropriate.

The move would represent a relatively cheap win for Next, whose fortunes have contrasted sharply with Joules' over recent months. Last week, it raised its full-year profit forecast after posting second quarter sales ahead of expectations. However, even Next said it expected worse times ahead as the economy slows. The Bank of England forecast an unprecedented five straight quarters of contraction for the U.K. economy at its meeting last week.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    London
    EC2A 2BN
    United Kingdom


    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    Dubai
    United Arab Emirates
     
    T: + 00 971 44 22 888
    E:  info@ofmarkets.com
     

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: