Joules Group PLC shares slumped on Monday after it confirmed it is in talks with KPMG International Ltd to shore up its balance sheet, as the retailer grapples with a cost of living crisis and inflationary pressures.

Joules shares plunged 20% to 26.63 pence each in London on Monday morning. Shares have fallen 90% over the past 12 months.

Joules said it focusing on ‘improving profitability, cash generation and liquidity headroom’ and has called on KPMG to assist with the process.

The company was responding to a Sunday Times report which stated that KPMG’s debt advisory arm is exploring options to solidify the retailer’s cash position. Options being mulled include a capital raise, the Sunday Times reported.

The Sunday Times added that Leicestershire, England-based Joules is moving away from unprofitable deals and Chinese suppliers to mitigate supply chain disruptions.

The company is progressing with simplifying its business, optimising the cost base and improving long-term profitability, Joules added on Monday.

‘Whilst the group continues to manage its cash resources carefully over its seasonal borrowing peak, it expects to have sufficient liquidity to manage its working capital requirements over this time,’ the company explained.

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