Next’s rescue deal for Joules

Next will take a 74% stake in the business, with Tom Joule owning the rest. Next has also paid 7 m to buy the current Joules head office.

The chief executive of Next, Lord Wolfson, said that they are excited to see what can be achieved through the combination of Joules' exceptional product, marketing and brand building skills with Next's Total Platform infrastructure. After the rescue deal is completed, Joules said that after completion of the rescue deal, Mr Joules would take over the lead in establishing the clear identity of the brand and product, which is a good outcome for Joules. It's the second business Next has bought out of administration in the space of about a month.

Joules had been seen as a success story, valued at 140 m when it floated on the stock exchange in 2016. She said that the deal with founder Tom Joules will see the distinctive wellies, coats and fleeces sold alongside a directory of other brands at a time when consumer spending power has taken a hit.

There are niggles that this retail powerhouse could be biting off more than it can chew, as this is a tried and tested strategy with Reiss, Gap and Victoria Secret Secret also sold on the Total Platform Next e-commerce platform with Next scooping up commissions on sales. She said that it's likely that it's going to squeeze margins because of the effect of soaring inflation on the group's wider business, which is looming large over the group's customer base.