Joules owed nearly GBP 114 million when it plunged into administration

 

By guest author Sahar Nazir from Retail Gazette

Caption courtesy by Retail Gazette

Joules owed more than GBP 100 million when it collapsed into administration last month.

The lifestyle retailer was nearly GBP 114 million in the red when it called in administrators in November.

Joules was acquired by Next and founder Tom Joule, which meant almost 1500 jobs were saved across stores and head office.

During its administration, the retailer owed money to trade creditors, gift card holders and HMRC among others, Business Insider reported.

Joules’ trade creditors include a software company, which is owed GBP 345000, a Deloitte branch in Hong Kong, owed GBP 30000, and a raft of property companies and landlords, which are owed hundreds of thousands of pounds.

This was found in Joules’ “statement of affairs” which also revealed that it owed HMRC GBP 3.86 million, while GBP 1.3 million was owed to gift card holders.

Joules had assets of approximately GBP 22 million available to pay preferential creditors when administrators were drafted in.

The takeover saw Next and Joule acquire the “majority of assets of Joules” through a newly formed company for GBP 34 million at the start of December.

Next now owns 74 % of the retailer, with the remaining 26 % held by Joule.

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