Administrators of collapsed fashion chain, Joules, are set to repay the millions owed in overdue VAT.

The retailer owed £5.9m and the sale of its assets is understood to be worth a full repayment of the tax due to HM Revenue and Customs (HMRC), as reported by Retail Gazette.

Joules, which has stores in Gloucester and Cirencester, went into administration in November 2022 after it was unable to secure a refinancing deal.

Retail giant Next snapped up the brand, buying around 100 of its stores and its head office for £34m in a joint venture with the retailer's founder, Tom Joule.

Several stores were closed immediately, including the one on Cheltenham Promenade.

Administrators Interpath Advisory previously reported that Joules owed more than £100m in total to suppliers, landlord and customers with gift cards.

Now Interpath is set to make a full repayment to HMRC, as the liquidation process continues.