Regulator launches probe into Joules accounts audit

By

Nigel TAYLOR

Published
May 9, 2023

An investigation has begun into the 2021 accounts of now-reborn retailer Joules. The lifestyle/fashion brand was rescued out of administration by Next in December 2022 in a £34 million deal that saved around 1,400 jobs and 100 of Joules’ 124 stores.

However, creditors were owed £114 million when the stock market-listed business collapsed last November and now the Financial Reporting Council’s (FRC) enforcement division, is combing through Deloitte’s audit of the 2021 accounts for the retailer.

No reason was given for why the investigation has been launched regarding the company that had struggled for some time before it collapsed so we’ll have to wait and see what happens as such investigations are rarely speedy affairs.

A Deloitte spokesperson said: “We will co-operate fully with the Financial Reporting Council’s investigation and remain committed to the highest standards of audit quality.”

The current business under its new owner is still going through a transition period, with Next saying late last month an ongoing restructure will result in some job losses.

It said “a number of tasks performed by Joules personnel will now be absorbed into Next teams or no longer be needed”. 

Although Next now owns 74% of the business, it “will remain an independent company with its own board and management team. However, the team, led by founder Tom Joule, will be entirely focused on product, marketing and brand development”.

Those remaining with Joules — the senior management, product and marketing teams — will continue to work from Joules' existing offices.