Struggling retailer Joules is in discussions with Next about a £15million investment in the business.

It has confirmed talks are taking place over a "potential equity investment" raising proceeds of circa £15million at no less than Joules' current market price.

It would mean fashion giant Next would become a strategic minority shareholder in the group which has stores in Gloucester, Cheltenham, Cirencester and Monmouth.

The equity investment would be subject to approval by Joules' shareholders it said in statement released yesterday.

The two companies are also discussing Next adopting its Total Platform services "to support the group's long term growth plans."

"There can be no certainty these discussions will lead to any agreement. A further announcement will be made if and when appropriate," concluded the statement.

Joules called in accounting consultancy KPMG  to help it find a lifeline after it found its cash reserves drying up as the cost-of-living crisis hit the high street.

The high street chain, known for its Breton tops and wellies, has been struggling to contend with rising costs and a slowdown in consumer confidence borne out of historic levels of inflation.

The retailer announced at the beginning of May that chief executive Nick Jones would be leaving the business after reporting declining profits in the first half of the year.