Under the terms of the deal, Next will have a 74% stake in the business, with Tom Joule owning the rest. Next paid 7 m to buy the current Joules head office.
The chief executive of Next, Lord Wolfson, said he was 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 completion of the rescue deal, Mr Joules said that it would protect the future of the company for its loyal customers, its employees and the city of Market Harborough, which have been so central to Joules' success. 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. The deal with founder Tom Joules will see the distinctive wellies, coats and fleeces sold alongside its directory of other brands at a time when consumer spending power has taken a hit, she said.
There are niggles of worry that this retail powerhouse could be biting off more than it can chew, because 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 the group's customers base is looming large over the group's customer base, and it's likely that it's going to squeeze margins because of management's best efforts.