High street fashion retailer Next is in talks to acquire a minority stake in struggling fashion and lifestyle products chain Joules.
The news comes after Joules appointed KPMG last month to assist with efforts to improve its “profitability, cash generation and liquidity headroom”.
It also agreed an extension to banking facilities with Barclays that would place restrictions on its ability to pay dividends.
The parties are discussing a potential equity investment of approximately £15m to give Next a stake of about 25% in the smaller retailer, according to Sky News.
Joules also said that it is in talks to use Next’s online platform to run its digital operations. Next already sells Joules clothing through its own website.
The expanded deal would involve transitioning Joules’s existing online operation, warehouse, distribution and logistics to use Next’s Total Platform services to run its retail websites and back-end operations, according to the Guardian.
Joules operates about 130 stores and employs more than 1,000 people.
