// Next has been in negotiations for “several weeks”
// If the acquisition is successful Joules Next’s online platform
High street giant Next is in talks to acquire a big stake in struggling fashion and lifestyle retailer, Joules.
According to Sky News, Next has been in negotiations for “several weeks” to acquire 25% of Joules.
For Next, acquiring 25% of the retailer, it would cost around £10 million at the smaller company’s current valuation.
If the acquisition is successful, the troubled retailer will join Next’s online platform, as it continues to expand beyond the core brand.
However, City sources claim that the discussions are not certain to result in a deal, with an announcement being “some time away”.
Joules currently has around 130 stores and employs over 1,000 employees, but, has recently been hit with a difficult period as inflation pressures continue to bite.
EY is said to be advising Next on its talks with Joules.
The news comes as Next upgraded its full-year profit forecast after warm weather and demand for formal clothing helped boost sales in the first half of the year.
The fashion retailer‘s sales performance exceeded expectations by £50 million, leading it to raise its full-year profit guidance by £10 million to £860 million.