Joules calls in advisors following impact of cost of living crisis
Lifestyle brand Joules has responded to a report over the weekend that it had called in advisors to help “shore up” its cash position during the cost of living crisis.
The Sunday Times reported yesterday that the company had hired KPMG.
However, today Joules said it is continuing to focus on improving profitability, cash generation and liquidity headroom and has appointed KPMG to assist with the process.
It also said: “As at 29 May, the group had net debt of £21.4 million, giving £11.3 million headroom within its banking facilities, in line with the board’s expectations. Whilst the group continues to manage its cash resources carefully over its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements over this time.
“The group is making good progress against previously announced key initiatives aimed at simplifying the business and optimising the cost base to improve long-term profitability. This includes implementing significant changes to its wholesale operations to focus on fewer, profitable wholesale accounts and improving and simplifying the group’s end-to-end product process to reduce costs and shorten lead times.”
In May, Joules announced that profit in the 13 weeks to 1 May had been hit by an increasingly promotional environment, reduced demand for full price items and subdued sales in its home and garden category.
