Joules responds to CVA rumours as turnaround sees 'good progress'

Following reports that it is exploring a company voluntary arrangement, British lifestyle business Joules has confirmed it is working with Interpath Advisory.

Under its new leadership team, led by Jonathon Brown and supported by Tom Joule in an executive capacity as Product Director, Joules has said it is making "good progress" in developing its turnaround plan.

As part of this, the group has confirmed that Interpath Advisory is assisting the board with an initial assessment of certain elements as part of the development of its turnaround plan.

Joules' plan focuses on driving higher profitability through a better pricing and promotional strategy, developing more profitable product categories with shorter time to market and optimising the group's channel mix.

The announcement comes after Sky News reported that Joules is working with Interpath Advisory on a company voluntary arrangement to lead store closures, rent reductions and job cuts.

The news outlet said that Joules had not formally decided to launch a CVA or restructuring plan but was "seriously looking" at the possibility.

In a statement, Joules Group has now said: "Joules confirms it is making good progress in developing its turnaround plan which focuses on driving higher profitability. The company continues to make good progress on its simplification agenda and cost management process. Interpath Advisory is assisting the board with an initial assessment of certain elements as part of the development of this turnaround plan."

Earlier this month, the company announced that discussions about Next acquiring a potential £15 million equity stake in the group have ceased.