Joules raises £15m to shore it up during coronavirus crisis
Joules has reported it has raised £15 million from investors, in a bid to shore up its balance sheet amid the global Coronavirus pandemic.
The £15 million was raised through gross proceeds of a successful completion of a share placing, with 18.75 million new ordinary shares being placed, priced at 80p each.
The proceeds of the placing are expected to provide the company sufficient liquidity headroom in a COVID-19-related downside scenario, as well as allow the company to emerge relatively stronger from this unprecedented situation.
Joules Founder Tom Joule and CEO Nick Jones were among those who participated in the placing, with Jones stating: “This placing will help Joules to deliver its long-term growth plans as well as supporting the business to successfully navigate through the current unprecedented trading environment.
“We are delighted with the levels of support from our shareholders which reflects broad recognition of the strength of the Joules brand and our business model as well as our exciting, long term prospects.”
The fashion and lifestyle retailer announced last month that in the UK Coronavirus has led to a significant decline in store footfall and revenue.
The company said that in the weeks since its half-year results were released in January, its key retail channels have performed “in line with expectations” but footfall has dropped significantly recently as the Government encouraged people to stay in their homes.