Fashion brand Joules is set to go into administration, putting its shops in Tayside and Fife at risk of closure.
The brand said talks over an emergency cash-call with investors including its founder Tom Joule were unsuccessful and have ended.
It means that around 1,600 jobs are under threat and the company is set to appoint administrators.
The business operates shops in St John Street in Perth and Bell Street in St Andrews.
Joules administration – what happens next?
The business said it will file a notice of intention to appoint Interpath Advisory as administrators “as soon as reasonably practicable”.
Joules said: “The board is taking this action to protect the interests of its creditors.”
The firm will suspend trading of its shares on the stock market due to the decision. It said further announcements will be made “in due course”.
It is expected to formally appoint administrators in the next five to 10 working days, but stressed that its stores and websites are continuing to trade as normal.
The Leicestershire-based chain has over 130 shops.
The process also includes online home and garden retailer The Garden Trading Company, which Joules owns.
Joules latest in ‘retail crisis’
Joules is the latest retailer to hit the buffers after online furniture business Made.com collapsed last week.
Rival Next bought its brand, websites and intellectual property. The deal led to more than 300 redundancies at Made.
Next had also been in talks with Joules over a deal to buy a minority stake, but discussions collapsed in September.
Victoria Scholar, head of investment at Interactive Investor, said: “Joules is the latest victim of the UK’s retail crisis as the demise of the high street and the cost of living crisis bite.
“Joules has been struggling with the squeeze on household budgets.
“On top of that retailers including Joules have been grappling with the rising cost of everything from materials to workers’ wages to energy bills.”
Conversation