By Emily Hawkins
Joules has acknowledged a CVA is one of a number of “potential options” it may opt for as it seeks to turn around the fortunes of the beleaguered lifestyle retailer.
Sky News had reported that the struggling firm had been working with Interpath Advisory to discuss using a Company Voluntary Arrangement (CVA), with job losses and store closures up in the air in this event.
In a note acknowledging the media speculation on the London Stock Exchange, Joules said it was making “good progress” with its turnaround plan to drive higher profitability.
The retailer said it continues to look at options including “a possible equity raise” in order to help Joules “strengthen its balance sheet and provide a strong platform to support the turnaround plan.”
However, the company is also looking at “a range of other potential options,” including a CVA.
It noted that “it has not determined if such alternatives are required.”
A CVA allows an insolvent company to pay creditors over a fixed period so that the firm can continue trading.
The company has faced intensified pressure on margins in recent months as consumer appetite slows and macroeconomic headwinds batter profits.
Last month, Joules also announced that talks with high street giant Next over a potential £15m rescue deal had ended.
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