Premium fashion and lifestyle brand Joules has purchased the freehold of 30,000 sq ft premises in Market Harborough, which it is set to transform into its new HQ.
The building, known as Compass House, is adjacent to Joules’ existing head office and the £4.4m the company has invested in it also includes the adjoining development land and car parking space.
CEO Colin Porter said the acquisition will help support the AIM-listed brand’s long-term growth plans. “Joules is growing quickly and we are confident that this represents another important step in supporting the brand’s long term growth both in the UK and internationally,” Porter said.
“Our skilled and dedicated people are the heart of our business. This move will enable us to bring our head office teams together in a modern and collaborative working environment. We are confident that this will further strengthen our unique culture and brand values as well as enhancing efficiency and creativity,” he said.
The acquisition of the new site will in part be funded through a new £3.5m, five-year term loan facility arranged with Barclays Bank. It is also extending its existing £25m revolving credit facility with Barclays by 14 months to July 2021. Joules said the transaction was anticipated to be earnings neutral throughout the period of refurbishment and earnings accretive following full occupation of the site, which is anticipated in FY19.
Joules was established nearly 30 years ago by Tom Joule and today it has evolved into a fully fledged lifestyle brand for men, women and children sold through its own stores and website, as well as via wholesale. It floated on AIM last spring and last month it reported a near 20% rise in sales to £157m in the year to 28 May 2017.
