UK fashion retailer Joules said on Monday it was on the brink of collapse, as decades-high inflation hit business costs and consumer spending.
A statement said that Gol, famous for its luxury wells, plans to hire administrators to try to save some of the business, after it failed to secure an emergency cash infusion.
It added that trading in its shares has been suspended. Joules employs approximately 1,600 employees, while selling its merchandise from more than 130 stores and online.
Jules said her move into management was to “protect the interests of her creditors”.
It follows the collapse of British online furniture store Made.com last week after it was hit by rising costs and supply chain disruptions.
“Retailers including Joules have grappled with the rising cost of everything from materials to worker wages to energy bills,” noted Victoria Scholar, chief investment officer at Interactive Investor.
UK inflation stands at a 40-year high of more than 10% and is expected to rise further before the end of the year.
Meanwhile, businesses and individuals in the United Kingdom faced another blow when the government on Thursday unveiled a budget set out to include tax increases.
Prime Minister Rishi Sunak and Chief Financial Officer Jeremy Hunt are seeking to bring economic and political stability to the country after months of turmoil.