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Joules faces £100 million debt following collapse
https://www.whatjobs.com/news/united-kingdom/uk-business-news/joules-faces-100-million-debt-following-collapse
Joules, the fashion retailer that collapsed last year, reportedly still has outstanding debts of over £100 million owed to suppliers, landlords, and customers holding gift cards, according to newly released documents.
Following the collapse, the retailer was acquired by Next, who collaborated with founder Tom Joule in a £34 million deal to save 1,450 jobs and 100 stores.
The latest progress report from the administrators reveals that unsecured creditors are owed £112 million as a result of the fallout, while clothing and fabric suppliers have incurred losses of £38.6 million, and associated property companies are owed £3.8 million.
Read More: Spurned Joules bidder Foschini sparks row over sale to Next
Customers holding gift cards are also owed £1.3 million, with the remaining debt owed to other connected companies and creditors.
The statement indicates that these parties will receive only a small fraction of the amount they are owed.
Administrator Interpath Advisory estimates that a dividend ranging from 12p to 15p per pound will be paid to creditors by November 2024.
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The restructuring process has been extended by another year.
Next's acquisition of Joules happened shortly after the company acquired the intellectual property of furniture retailer Made.com following its own collapse.
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