By Geoffrey Smith
Investing.com -- U.K. fashion group Joules (LON:JOUL) said on Monday it intends to appoint administrators, having run out of rescue options.
As such, the company's shares will cease trading on the London Stock Exchange as of Monday.
Joules had fatally overordered new collections of its usually popular outdoor clothing this year, not anticipating the slowdown in consumer demand across its key U.K. market due to soaring inflation. In addition, the sustained bottlenecks in shipping markets earlier in the year had frustrated its plans to penetrate the U.S. market, forcing it to absorb much higher freight costs.
Joules had turned to its founder Tom Joule as a last-ditch measure, having earlier failed to persuade high-street stalwart Next (LON:NXT) to inject fresh equity and also failing to persuade its bankers to extend a revolving credit facility that matures at the end of the month.
"The Board confirms these discussions with various parties have not been successful and have now terminated," it said in a brief statement.
The company is one of the highest-profile names in London to go under as a result of the looming recession in the U.K. Gross domestic product fell in the third quarter and is expected to carry on falling through the winter.