Inflation prompts the British clothing company, "Jules", to file for bankruptcy

LONDON (AFP) - British clothing company Joules is preparing to file for bankruptcy after running out of cash, as the economic crisis pushes consumers to cut spending in the face of inflation.

Jules said in a statement on Monday that she was unable to raise funds from investors, nor to obtain a short-term bridging loan.

A company spokesman told AFP that the group currently employs 1,600 people whose jobs are under threat and has 132 stores.

Trading in its shares on the London Stock Exchange was suspended.

"Jules is the latest victim of the crisis that UK retailers are facing, in the context of a purchasing power crisis," commented Victoria Scholar, analyst at Interactive Investors.

The inflation rate reached 10% in the country, while rising costs weighed on business activity and indicators of confidence in the economy.