Next Shares Mostly Flat Following Joules Rescue Deal

Fashion retailer Next plc (LON: NXT) announced Thursday that it has bought Joules Group (LON: JOUL) with founder Tom Joule in a £34 million rescue deal.

The cash transaction to acquire Joules out of administration will see Next own 74% of the company, with Tom Joule holding the remaining 26%. The company said it has also acquired the current Joules Head Office for £7 million in cash.

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Approximately 100 of the current 124 Joules stores remain open in the UK and Ireland, with 19 stores closed by the administrator on Thursday.

Next shares are up around 0.3% on Friday after closing Thursday’s session down 0.45%.

Joules, founded in 1989 by Tom Joule, will keep its management autonomy and creative independence, have its own Board of Directors, and continue at its Market Harborough base, while most of the company’s staff will remain with the business. Jonathon Brown, appointed CEO of Joules in 2022, will remain in the role.

“We are excited to see what can be achieved through the combination of Joules’ exceptional product, marketing and brand building skills with NEXT’s Total Platform infrastructure,” said Next Chief Executive Simon Wolfson.

Tom Joule said that after three years away from the company’s operational side, he is “looking forward to inspiring teams with clear direction to excite and recapture the imagination of the customer again.”

“Our customers have always trusted us to lead, not follow, with products that reflect their lifestyle. It’s important that we live up to the high standards they desire in design, quality and, with NEXT’s Total Platform delivery and customer support proposition, the service they expect,” he added.