Aldo completes restructuring, Joules calls in debt experts, Kohl moves on – Sourcing Journal


Retailers at home and abroad are pondering their future amid scorching inflation and a tattered supply chain.

This week, Joules hired a debt specialist to shore up its cash position, while liquidators hope to find a home for bankrupt Gieves & Hawkes. Kohl’s continues to work on itself as the back-to-school season begins, as Aldo wraps up a two-year restructuring.


Trouble surfaced in May when Joules said it might not turn a profit and CEO Nick Jones said he was leaving the UK home and garden retailer.

Despite strong revenue growth in the third quarter, Joules did not sell as many products at full price, thanks to shipments stuck in congested supply chains. Earlier this week he appointed KPMG’s debt adviser to protect its “profitability, cash generation and liquidity margin”.

Joules was forced to take action after net debt ballooned by 21.4 million pounds ($25.4 million) as of May 29, or 11.3 million pounds ($13.4 million) from more than the threshold of its banking partners. Companies only turn to experts when they are really in dire straits. The UK retailer best known for selling colorful Wellington boots also has to fight inflation, which means people are shopping less often for anything other than the essentials. Joules shares closed Friday’s trading session at 20.80 pence ($0.25).

“While the Group continues to manage its cash resources carefully during its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements during this period,” Joules said in a statement. Monday.

Gieves & Hawkes

Meanwhile, fellow UK label Gieves & Hawkes is on sale. The liquidators of parent company Trinity Group are buying the 250-year-old Saville Row tailor who serves the British royal court. Questions over the future of the menswear retailer surfaced last year after company owner Shandong Ruyi ran into financial difficulties and handed liquidators responsibility for Trinity, which bought Gieves & Hawkes in 2012 for £32.5 million ($38.7 million) plus earnouts. The liquidators also now own Trinity’s Kent & Curwen and Cerruti 1881 brands.

Marks & Spencer’s (M&S) earlier interest in Gieves & Hawkes did not materialize into anything concrete. It wasn’t immediately clear whether M&S or its private equity cronies are still willing to woo the prime label. But with the brand languishing for most of the year, there’s a chance someone could scoop up the retailer for a cheaper price. Liquidators hope the ink will dry on a deal by the third quarter for Gieves & Hawkes’ UK business and operations, and Greater China licensing deals, according to a Bloomberg report.

Kohls Corp.

Fresh off of a frantic few months that failed to sell, Kohl’s is focused on the new Discover @ Kohl’s store experience focused on selecting products that will attract customers browsing the store. A designated back-to-school area will feature new brands such as Ivory Ella’s sweatshirts and t-shirts, as well as activewear, jeans and t-shirts.

Ron Murray, acting director of merchandising, said Discover @ Kohl’s helps the chain put “unique”, “emerging” and “hard to find” brands in front of customers who will “feel good” about those purchases.

“In fact, Discover @ Kohl’s paved the way for us to introduce over 30 new diverse and women-owned brands this year,” Murray added. In October, the concept will focus on themes such as Get Outside, Fall Family Fun and For Women by Women, a collection of activewear created by women.

With unsuccessful Franchise Group deal talks in the rearview mirror, Kohl’s is now reassessing “monetization opportunities” for some of its real estate holdings, an activist move that appeals to investors that analysts and consultants have dismissed, pointing to the downfall amazing from Sears as a cautionary tale.

Aldo Group

The Aldo Group has ended its long restructuring more than two years after filing for bankruptcy in Canada just two months after the start of the Covid pandemic, with similar filings in the United States, Switzerland, Ireland, as well as in the UK, where the business was sold. at Bushell Investment Group.

“It is with great relief that we have put this process behind us and with excitement that we now look to the future,” said CEO David Bensadoun. “The work and restructuring we have done over the past two years has built a solid foundation for us to grow from, and we are confident in what the future holds.”

By the end of June, all of Aldo Group International’s creditors had been paid, with North American creditors expected to settle in the coming months, the company said.

Aldo operates the Aldo and Call it Spring brands in addition to the Globo multi-brand retail concept. With stores in over 100 countries, it is also a wholesale distributor and third-party supplier of shoes, handbags and fashion accessories.


Comments are closed.