Joules admits CVA is an option, says it's still making progress
Joules has admitted that a company voluntary arrangement (CVA) is a possibility for the group as it seeks solutions to its current problems.
In a stock exchange update on Monday morning, the lifestyle and fashion group said it was responding to recent media reporting. News stories in the last week or so had suggested that a CVA was being pursued, although the company hadn't confirmed this until now.
It also said that it “continues to make good progress in developing its turnaround plan which focuses on driving higher profitability including through: a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; and optimising the group's channel mix. Joules also continues to make good progress on its simplification agenda and cost management process”.
And as for the CVA option, it added that it “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. Whilst this remains the board's focus, the company also continues to consider a range of other potential options which may be available to it, where a CVA is one of a number of such alternatives, and notes it has not determined if such alternatives are required. A further announcement will be made if and when appropriate”.
The retailer has faced major challenges in recent periods and its problems have mounted against the very tough trading backdrop. The company's share price has also suffered to the point that its share price and market capitalisation have lost over 95% in the last 12 months. The total market cap today is only around £10 million.
Copyright © 2023 FashionNetwork.com All rights reserved.