Joules Group said on Tuesday it was no longer in talks with retailer Next Plc over a potential £15 million ($17.29 million) equity investment in the British fashion group, sending its shares down more than 45 percent.

Joules, which did not disclose the reason behind the stalled talks, has been struggling with its finances as consumers turn cautious about spending due to surging inflation and a deepening cost of living crisis.

The company, which sells clothing, footwear and accessories among others, said it was assessing its ongoing financing requirements and considering alternative options, including a possible equity raise.

Joules added it was developing a turnaround plan to drive higher profitability through a better pricing and promotional strategy, focusing on more profitable product categories, among others, as it looks to cutting costs.

The company, which last month warned of an annual loss, said its outlook for the full year was unchanged.

Shares in Joules jumped 33 percent on Aug. 8 after the company said Next’s investment at no less than current market price would make the FTSE 100 retailer a strategic minority shareholder.

By Shanima A; Editor: Anil D’Silva

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