NEARLY three weeks of talks have reportedly failed to produce a breakthrough on plans for Next to take a stake in struggling fashion chain Joules.

City sources told Sky News' Mark Kleinman that Next had not received sufficient financial information to allow it to table a formal offer.

Joules has been battling headwinds for some time and was forced to deliver yet another profit warning last week. The firm's share price sat at 33p when Next's interest was first reported but is now lower at 25.5p a share, further complicating any potential investment.

A Joules spokesperson told Kleinman: "Joules continues its positive discussions with Next plc about both adopting its Total Platform services to support its longterm growth plans and a potential equity investment.

"There can be no certainty that these discussions will lead to any agreement, and further announcements in this regard will be made if and when appropriate."

Joules announced earlier this month that former Aviva and Kingfisher exec Jonathon Brown would be taking the top job from the end of September, after the abrupt announcement in May that existing boss Nick Jones would be stepping down this year. Brown was most recently boss of Compare the Market.

"Whilst there have been some headwinds in the past year, I am very excited by the business' future opportunities. The Group is making strong progress against its clear plans to improve profitability by simplifying the business and optimising the cost base," Brown said at the time.

"I look forward to working closely with the Joules team to return the business to sustainable, profitable growth and optimise the significant future opportunities available to us."

(c) 2022 City A.M., source Newspaper