London, United Kingdom fashion Retailers Joules on Monday announced that it is on the verge of falltens of years high inflationary on business costs and consumer spending.
Joules, known for its luxury gifts and plans to appoint administrators to try to salvage some of the business, failed to secure an emergency cash injection, a statement said.
It added that trading in its shares had been suspended. Joules employs about 1,600 people, and sells its products from more than 130 stores and online.
Joules said the move to management was “to protect the interests of creditors”.
It follows the collapse last week of British online furniture store Made.com after being hit by soaring costs and supply chain disruptions.
Victoria Scholar, head of investment at Interactive Investor, notes: “Retailers including Joules have struggled with the rising costs of everything from materials to workers’ wages to energy bills.
UK inflation stands at a 40-year high of more than 10% and is forecast to rise further before the end of the year.
Meanwhile, UK companies and individuals are facing another hit as the government on Thursday unveiled a budget set to include the tax hike.
Prime Minister Rishi Sunak and chief financial officer Jeremy Hunt are seeking to bring economic and political stability to the country after months of turmoil.
