Clothing chain Joules has been rescued from administration by retail giant Next and founder Tom Joule.

Under the £34million deal, Next says it intends to keep about 100 Joules stores and save 1,450 jobs.

But outlets in Union Square, Aberdeen, and Eastgate Shopping Centre, Inverness, will remain open.

However, 19 stores will be closed with immediate effect with the loss of 133 posts.

Joules, known for its premium, brightly-coloured clothes, collapsed into administration last month after failing to secure emergency investment.

The BBC says that, like other retailers, the Leicestershire-based firm has struggled against a backdrop of the coronavirus pandemic and cost-of-living pressures.

74% stake for Next

Under the terms of the deal, Next will take a 74% stake in the business, with Tom Joule owning the rest. Next has also paid £7million to buy the current Joules head office.

Next will continue to operate Joules' website, but will also sell Joules-branded clothing through its own e-commerce platform from 2024.

The chief executive of Next, Simon Wolfson, said: "We are excited to see what can be achieved through the combination of Joules' exceptional product, marketing and brand-building skills with Next's Total Platform infrastructure."

Mr Wolfson said that, after completion of the rescue deal, he would "take the lead in re-establishing the clear identity of both brand and product".

Mr Joule, who founded Joules in 1989, said the deal would protect the future of the company for its "loyal customers, its employees and also for the town of Market Harborough, which have been so central to Joules' success".

He stepped back from designing Joules' products in 2019, but recently returned to be the company's product director.

'Not without risk'

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said the acquisition was "not without risk" for Next.

''The deal with founder Tom Joule will see the distinctive wellies, coats and fleeces sold alongside its directory of other brands at a time when consumer spending power has taken a hit," she said.

Joules is the latest brand to be picked up by Next after getting into trouble.

Last month, Next bought furniture retailer Made.com's brand name, website and intellectual property after that company fell into administration.

FTSE 100

The UK's top share index, the FTSE 100, was down 35 points at 7,523 shortly after opening this morning, following yesterday's 14-point loss.

Brent crude futures were 0.59% higher at $87.33 a barrel.

No FTSE 350 companies are due to report today.

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