Joules Group PLC on Monday said it ‘continues to make good progress in developing its turnaround plan’ as it discussed possible options for future company financing.

The Leicestershire, England-based country lifestyle retailer said it was working on a ‘better pricing and promotional strategy’ as well as focusing on more profitable product categories in order to drive higher profitability. It said it was also making ‘good progress’ on its simplification agenda and cost management process.

Joules ‘continues to assess its ongoing financing requirements, including a possible equity raise’ which would allow the board to strengthen its balance sheet. However, the board also is considering a number of other alternatives, including a company voluntary arrangement, it said, but has not yet decided if these alternatives are required.

A company voluntary arrangement is an insolvency process that allows a company to pay a proportion of the debt that it owes or to come to some other arrangement with its creditors while still trading normally. A 75% majority of creditors must approve any arrangement for it to take force. CVAs are often used by companies that are viable but burdened by historic debt.

Joules has had a difficult year after warning in August that it expected a ‘significant loss’ in the first half of 2022 alongside a full year profit ‘significantly below’ expectations. Larger peer Next PLC was in talks to acquire a stake in Joules in August, but the two companies were unable to reach an agreement.

Shares in Joules were trading 1.7% higher at 9.16 pence each in London on Monday morning.

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