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// Joules confirms it has appointed KPMG debt advisory to help shore up its cash position
// The retailer says the “group continues to focus on improving profitability, cash generation and liquidity headroom.”
Joules has provided a statement in response to an article published in The Sunday Times, which reported that the British lifestyle retailer is seeking a cash lifeline as the cost-of-living hits the high street.
According to the title, consultants from KPMG’s debt advisory practice are said to be exploring options, including raising fresh capital, after inflationary pressures drained the retailer’s cash reserves.
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In response to the article the retailer confirmed it has now appointed KPMG debt advisory to assist in this process, adding that the “group continues to focus on improving profitability, cash generation and liquidity headroom.”
“As at 29 May, the Group had net debt of £21.4m, giving £11.3m headroom within its banking facilities, in line with the Board’s expectations,” the retailer said in the statement.
“Whilst the Group continues to manage its cash resources carefully over its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements over this time.
“The Group is making good progress against previously announced key initiatives aimed at simplifying the business and optimising the cost base to improve long-term profitability. This includes implementing significant changes to its wholesale operations to focus on fewer, profitable wholesale accounts and improving and simplifying the Group’s end-to-end product process to reduce costs and shorten lead times.”
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