British retailer Next (NXT.L) has bought wellingtons to jumpers store chain Joules in a rescue deal with its founder, paying 34 million pounds ($42 million) in cash to buy the majority of its assets out of administration.
The deal will keep about 100 Joules shops open while about 24 will be closed, 19 immediately, Next said in a statement on Thursday, meaning 133 job losses from amongst the 1,600 staff who work for Joules.
Last month, Next, one of Britain’s biggest clothes retailers, stepped in to buy another high profile casualty of the consumer downturn in Britain, acquiring Made.com, but in that case it bought only the brand, resulting in about 400 redundancies.
Some retailers in Britain are struggling as shoppers rein in spending due to soaring household bills, with Joules and Made.com the biggest names to enter administration.
Under the arrangement struck between Next and Tom Joule, who launched the country-inspired brand famous for its stripes and floral prints in 1989, Next will own 74% of the new company with Joule holding the balance.
Joules will use Next’s technology, namely its Total Platform, for its online sales, website, warehousing and distribution needs.
Next said its plan to keep 100 shops open was subject to agreeing terms with landlords. It also said that it had paid 7 million pounds for the Joules head office and that the chain would retain “management autonomy and creative independence”.
