Joules Group PLC (AIM:JOUL) said it might have to consider a restructuring of its creditors in light of its financial difficulties.
The troubled high-end retailer, which has around 130 stores and 1,300 staff in the UK and Ireland, admitted a company voluntary arrangement (CVA) could be a possibility to pay debts to its suppliers after unveiling a “significant” loss for the first half of the year.
No decision had been made yet, it added, in response to reports over the weekend, with a CVA one of a number of alternatives, though it added it had not yet determined if any such action is required.
"As previously announced, the group continues to assess its ongoing financing requirements, including a possible equity raise, to allow the company to strengthen its balance sheet and provide a strong platform to support the turnaround plan,” it said.
Joules, which is reportedly a favourite of William and Kate, insisted it “continues to make good progress in developing its turnaround plan.
The Leicester-based retailer is working on a “simplification agenda” and “cost management process,” it said in a statement on Monday.
Joules was in negotiations to sell 25% of the company to high-street rival Next for £15mln to help its liquidity problems before talks ended in September.
Shares climbed 2% higher to 9.2p by around midday on Monday.