Joules Shares Plummet After Collapsed Takeover Talks with Next
- Next pulls out of Joules takeover deal
- Joules shares plummet after confirmation of collapsed deal
- Discussions about using Next’s online platform for selling clothes continue
Fashion retailer Next has reportedly pulled out of its takeover deal with Joules after talks between the two ended, according to The Independent. Joules was said to be in investment talks with the group last month after reports stated it could sell a 25% stake to its larger rival. Following the news, shares in Joules have reportedly plummeted by over a third on Tuesday (13 September) after it received confirmation that the deal had collapsed. According to The Independent, the retailer told shareholders that discussions over the move, which reports claimed could have raised around £15m, have ended. The brand told The Independent that it will continue work on its turnaround plan to ‘rapidly improve profitability’ by improving its pricing and promotional strategies, as well as focussing on more profitable products and cost control. However, Joules is said to still be in discussions with Next about using its online platform to sell its clothes. The retailer’s outlook is also said to be unchanged for the current financial year. A Joules spokesperson told The Independent: ‘Discussions about Next plc acquiring an equity stake in the group have ceased, however discussions regarding Joules potentially adopting the Next Total Platform in the future will remain ongoing.’ Joules and Next have declined to comment at this time.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the collapse of the takeover deal between Next and Joules, and mentions the reasons for the end of discussions. It also reports on Joules’ plans to improve its profitability and ongoing discussions with Next regarding the use of their online platform. The source is cited and no personal opinions or biased statements are included.
Noise Level: 3
Noise Justification: The article provides relevant information about a business deal falling through and the company’s plans for moving forward. It also mentions potential future collaboration between the two companies. However, it lacks in-depth analysis or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Joules’ shares
Financial Rating Justification: The article discusses a failed takeover deal between fashion retailers Next and Joules, which impacted the financial markets as Joules’ shares plummeted after the news. It also mentions potential alternative financing options for Joules.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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