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FRIDAY 2 DECEMBER 2022
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HIGH STREET GIANT SNAPS UP BRUISED CLOTHING FIRM EMILY HAWKINS HIGH STREET behemoth Next bought fashion retailer Joules out of insolvency yesterday, saving 100 stores. Joules called in administrators a few weeks ago, with 1,600 jobs hanging in the balance. Stalwart Next confirmed it had emerged victorious out of a bidding war, forking out £34m for the midmarket retailer. It has teamed up with founder Tom Joule, who will own 26 per cent of the company, with Next taking the remainder. The Next deal sees around 1,450 jobs maintained. However, 19 stores are not part of the transaction and will be closed immediately, resulting in 133 job losses. The retail giant won out over the Hobbs and Whistles owner, the South African Foschini Group.
Joules founder Tom Joule said he was looking forward to returning to leading the charge to “recapture the imagination of the customer again”, returning to an executive role. Simon Wolfson, head of Next, said he was “excited to see what can be achieved” through the combination of Joules’ products and brand with Next’s Total Platform infrastructure. Joules is set to go live on Next’s platform in early 2024, with Next providing warehousing and distribution services for Joules’ physical stores. Next has been on a high street shopping spree in recent weeks, snagging the Made.com brand shortly after the furniture firm collapsed earlier this autumn.
Global interest in the Joules brand over the last few weeks “just goes to show what reach Next may be able to achieve internationally as well as at home,” John Coldham, retail partner at law firm Gowling WLG, noted. Joules was hammered by subdued sales and heavy headwinds this year, while a mild autumn dampened demand for its jumpers and boots. The high street faces a tough winter as consumers are expected to tighten their purse strings after Christmas, in order to battle rising energy and grocery bills. The news came on the same day that markets received confirmation the iconic Savile Row tailor Gieves & Hawkes has been bought out of administration by Sports Direct owner Frasers Group.
‘TIS THE SEASON Workers get ready to party as City gets festive BEN JAGLOM THE SQUARE Mile has swung into the festive spirit this week as the first Christmas period without any restrictions gets off to a smashing start. City bars are welcoming post-work partygoers as the hospitality trade looks to take advantage of the festive season coinciding with the World Cup. Publicans are excited about the industry’s first full Christmas trading season in three years void of Covid-19 restrictions. Young’s said Christmas
bookings were “significantly ahead of last year”, while its City pub sales are already up 11 per cent versus last year. London remains a region home to a particular Christmas spirit, wth 73 per cent of London workers saying their company will be providing a staff Christmas party this year, way above the national average of 50 per cent, according to a survey by Moneypenny. Meanwhile, a looming recession is failing to dampen optimism in the City, with 56 per cent of London workers expecting a Christmas bonus.
Go Charlie Go? Sterling bounces to months-long high against the dollar JACK BARNETT THE POUND has climbed to its highest level against the US dollar since early August driven by investors betting on slower interest rate rises across the pond. Sterling bounced above $1.22 and was up over 1.6 per cent against the
dollar heading into evening trading yesterday. US Federal Reserve chief Jerome Powell earlier this week said the world’s most powerful central bank will likely slow the pace of rate rises to 50 basis points from 75 basis points at its meeting on 14 December.
It has lifted borrowing costs 75 basis points four times in a row, making US assets relatively more attractive than UK and European bonds and stocks. Higher interest rates strengthen currencies by increasing returns on assets denoted in said currency. The Fed’s rate rises have sent the
dollar on a tear against nearly all the world’s top currencies this year. Sterling’s upward move comes after its biggest monthly gain against the greenback in November since July 2020, up around five per cent, building on October’s 2.7 per cent fuelled by Rishi Sunak wiping away the legacy of Liz Truss’s
disastrous premiership. Sterling has defied analysts’ bets on it sliding below parity with the dollar. Those predictions were made in the immediate aftermath of Truss and Kwasi Kwarteng’s minibudget, which rocked financial markets by launching a round of potentially inflationary tax cuts.
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