The British distributor is the latest victim of the distribution crisis in the United Kingdom, in a situation of purchasing power crisis.
British clothing company Joules is set to file for bankruptcy after running out of cash as the cost of living crisis prompted consumers to cut spending in the face of inflation.
In a statement Monday, Joules said it failed to raise funds from investors and failed to secure a bridge loan.
“With regret” the board has announced its intention to appoint three directors of the firm Interpath Advisory Limited to “protect the interests of creditors”.
130 stores and 1,600 employees
According to the PA Agency, the company currently employs around 1,600 people whose jobs are threatened and has 130 stores. Spokespeople were not immediately available to confirm those numbers.
Action was suspended on the London market.
“Joules is the latest victim of the UK retail crisis in the context of a crisis of purchasing power,” commented Victoria Scholar, an analyst at Interactive Investors, who recalled that last week the company’s furniture e-tailer Made.com also went bankrupt .
Inflation has reached 10% in the country and rising costs are weighing on business activity and indicators of confidence in the economy.
Britain saw its gross domestic product fall in the third quarter and the Bank of England is predicting a recession that could be the country’s longest known.