The Financial Reporting Council (FRC) has launched an investigation against Deloitte in relation to its audit of fashion group Joules’ 2021 financial results.

Joules went into administration in November last year after it failed to secure emergent funding and owed creditors, HMRC, suppliers and staff more than £100m at the time of its collapse

The UK accounting watchdog opened an investigation into the retailer audit signed off by Deloitte for the year to May 2021, but did not comment on what is to be the focus of the investigation.

A spokesperson for Deloitte UK said: “We will cooperate fully with the Financial Reporting Council’s investigation and remain committed to the highest standards of audit quality.”

Joules was acquired by Next in a £34m deal that gave Next a 74% stake in the business with 26% remaining with Joules founder Tom Joule.