Joules has confirmed that its discussions about Next plc acquiring an equity stake in the group have ceased.
After the announcement that a potential 15 million pound equity investment in the British fashion group had failed, Joules shares sank more than 45 percent.
However, the company added that the discussions regarding Joules potentially adopting the Next Total Platform in the future will remain ongoing.
“The company has an ongoing positive relationship with Next, successfully selling Joules products through Next's Label channel which will continue,” it said.
Next and Joules end investment talks
Joules said the group continues to develop and execute its strategy and turnaround plan, which focuses on driving higher profitability through: a better pricing and promotional strategy; focusing on more profitable product categories with shorter time to market; optimising the group's channel mix; and a continuing strong focus on cost control.
The group's outlook for the full year remains unchanged.
Joules confirmed it was in talks with high street giant Next about a potential equity investment back in August.
But the deal was cast in doubt when later that month Joules saw its shares drop after warning it expects to deliver a full year loss before tax and adjusting items “significantly below current market expectations”.