REG - Next PLC - Acquisition

NextAnnouncement

01/12/2022 13:45

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RNS Number : 3065I  Next PLC  01 December 2022

 

 Date:         Immediate, Thursday 1 December 2022

 Contacts:     Alistair Mackinnon-Musson               Email: next@rowbellpr.com

               Rowbell PR - NEXT PLC                   Tel:  020 7717 5239

               Joules
               Hudson Sandler

                                       Email:joules@hudsonsandler.com
               Alex Brennan / Lucy Wollam

                                       Tel:  020 7796 4133

 Photographs:  NEXT images:  http://www.nextplc.co.uk/media/image-gallery/campaign-images
               (http://www.nextplc.co.uk/media/image-gallery/campaign-images)

 

 

NEXT PLC

Acquisition of Joules

 

NEXT plc ("NEXT") announces that it has partnered with Tom Joule to acquire
out of administration the majority of the assets of Joules via a newly formed
company (the "Company") for £34m to be settled in cash. In addition, NEXT has
acquired the current Joules Head Office for £7m cash. The Company intends to
continue to operate a significant number of stores (around 100 of the current
124 Joules' stores) in the UK and Ireland, subject to agreeing terms with
landlords. 19 stores will be closed by the administrator today.

NEXT will own 74% of the equity with the remaining 26% owned by Tom Joule.

Joules will retain its management autonomy and creative independence. The
Company will have its own Board of Directors and continue to be based in
Market Harborough.  Most Joules staff will remain with the business and
Joules will migrate onto the NEXT Total Platform over time - see below.

Joules was founded in 1989 by Tom Joule, who has been central to the brand's
growth and success. Tom passed accountability for design to the Joules
creative teams in 2019 and moved to a Non-Executive Director role. He has
recently stepped back into an Executive role as Product Director and intends,
upon completion of the Proposed Transaction, to take the lead in
re-establishing the clear identity of both brand and product that has been at
the heart of Joules' success over the last 30 years. He will also ensure that
there is leadership continuity for staff, suppliers and other key stakeholders
alike.

Jonathon Brown was appointed CEO of Joules in 2022 and will remain in that
role.

Joules' websites and online operations, both in the UK and overseas, will be
operated by NEXT through NEXT's Total Platform.  Total Platform will also
provide warehousing and distribution services for Joules' retail, franchise,
wholesale and concession businesses, all of which will continue to be operated
by Joules.  It is anticipated Joules will go live on NEXT's Total Platform in
early 2024.

The Company will benefit from Tom's understanding of the Joules brand,
customer and product direction that served Joules so well historically and
from NEXT's Total Platform, to bring operational efficiency to the newly
formed business.

Simon Wolfson, NEXT Chief Executive said: "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."

 

 

Tom Joule said: "After three years away from the operational side, I'm truly
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.

I'm so pleased that we have been able to strike a deal that protects the
future of the company for all its loyal customers, its employees and also for
the town of Market Harborough, which have been so central to Joules' success."

Will Wright, Head of Restructuring at Interpath Advisory and joint
administrator, said: "We are pleased to have concluded this transaction which
secures the future of this great British brand, as well as safeguarding a
significant number of jobs. To have achieved this in such a short timetable is
testament to the support we've received from employees, suppliers and other
key stakeholders throughout the administration process, so we'd like to
express our profound thanks to everyone involved."

ENDS

About NEXT

NEXT plc (LON: NXT) is a FTSE 100 company based in Leicester and is one of the
UK's leading online clothing retailers.  NEXT has around 500 stores in the UK
and Eire and an online presence in over 70 countries selling the NEXT brand
and over 700 other fashion, home and beauty brands, including Joules.

About Joules

Joules is a premium lifestyle brand and group with an authentic heritage and
values of family, fun and joy in the countryside.

Joules creates and curates exceptional products that brighten the lives of its
customers, delivered through leading digital platforms and supported by
enticing experiences and stores that are located in desirable locations
relevant to the Joules customer's lifestyle. 

The Joules story began in 1989, when Tom Joule started selling clothing on a
stand at a country show in Leicestershire. Today, the business designs and
sells Joules-branded clothing, footwear and accessories for women, men and
children as well as collections of homeware, toiletries, lifestyle and pet
product ranges that are carefully designed and developed through selected
licensing partnerships. Each collection comprises Joules' distinctive use of
humour, colour and unique prints, each of which is hand-drawn by the brand's
talented in-house print design team at its headquarters in Market Harborough,
Leicestershire. www.joules.com (http://www.joules.com)
 

 

 

 

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