Clothing and homeware company Joules has appointed administrators after talks to refinance the company broke down with agreement.
Trading in its shares on the Alternative Investment Market have been suspended from today and 1,600 jobs are now at risk across 132 stores.
The company announced last Monday that it was in advanced discussions with a number of strategic investors to provide a cornerstone investment in an equity raise process. It was also seeking a bridge financing proposal.
The board has confirmed that these discussions with various parties have not been successful and have now terminated.
It has now warned that it may not be able to repay a £5million loan by the end of the month.
“Regrettably therefore, the board of Joules has resolved to file a notice of intention to appoint Will Wright, Ryan Grant and Chris Pole of Interpath Advisory Limited as administrators to the company and Joules Limited, and Will Wright and Ryan Grant to The Garden Trading Company Limited and Joules Developments Limited as soon as reasonably practicable.
“The board is taking this action to protect the interests of its creditors.”
The company floated in May 2016 with a value of £150m and in August that year it opened a shop in George St., Edinburgh which was its biggest in Britain.
In 2013 founder Tom Joule launched a collaboration with the Edinburgh-based Cheeky Chompers baby products company after seeing its founders turned down for funds on the BBC’s Dragons’ Den.