Joules secures 15 million pound credit boost

Fashion and lifestyle retailer Joules has secured 15 million pounds to its revolving credit facility, with Barclays Bank, as the company looks to manage the ongoing coronavirus crisis.

The credit boost follows a share placing on April 3 that raised 15 million pounds, and is part of the retailer’s continued strategy to “conserve cash throughout this period of significant global macro-economic uncertainty”.

In addition to the credit facility and funding, Joules has also been speaking to its key stakeholders including stock suppliers, non-stock suppliers, landlords, and employees and the retailer explained that it was “grateful for their ongoing support”.

In a statement, the Joules board said that it believes that these “proactive actions, in combination with the recent equity placing and increase in the Group's RCF, has significantly strengthened Joules' balance sheet, providing Joules with sufficient liquidity headroom to manage a Covid-19 related downside scenario and the resources to emerge relatively stronger from this unprecedented situation”.

The group’s net debt position on April 19 was 6.9 million pounds with 43.1 million pounds of available headroom.

Joules gives itself “sufficient liquidity headroom” to manage a Covid-19 with revolving credit facility

The retailer’s e-commerce channel, which the brand explained represents approximately half of the group's overall retail sales, remains open for business, as it has introduced what it calls “robust physical distancing and hygiene procedures” with its distribution centre partner.

Customer traffic and demand to Joules.com has been running ahead of the group's revised expectations, set at the time of entering the UK Government's lockdown period.

Nick Jones, chief executive officer of Joules, said: "The completion of the additional facility with Barclays Bank plc provides Joules with further liquidity to navigate these challenging times and positions the business to continue to progress its strategic growth plans following the current period of significant disruption.

“Our e-commerce sales over recent weeks continue to demonstrate the strength of the Joules brand and the loyalty of our customer base. We know that further challenging times are ahead, but we are confident that, with the continued support of our colleagues, customers and the wider Joules community of suppliers and partners, Joules is well-positioned to manage these challenges."

Joules also added that it was being “mindful” of the contribution it can make to society at this challenging time, and its curated ‘Rainbow Edit’ launched earlier this month has already generated nearly 35,000 pounds for the NHS Charities Together.

In addition, Joules has been able to utilise its supply chain to support local Leicestershire health services and key partners through the provision of personal protective equipment with a donation of approximately 50,000 masks sourced so far.

Image: courtesy of Joules