UK watchdog probes Deloitte audit of UK clothing retailer Joules

Offices of Deloitte are seen in London

LONDON (Reuters) -Britain's accounting watchdog said on Tuesday it had opened an investigation into Deloitte's audit of clothing retailer Joules Group plc.

The Financial Reporting Council said its investigation is in relation to Deloitte's audit of Joules for the year ended 30 May, 2021.

Deloitte UK said it will co-operate fully with the FRC investigation and that it remains committed to the highest standards of audit quality.

Joules, whose shares had been listed in London, went into administration last year and was later acquired by Next Plc.

The retailer had been struggling with its finances,profitability and cash generation as consumers turned cautiousabout discretionary spending amid a cost of living crisis.

(Reporting by Huw Jones, editing by Sinead Cruise and Louise Heavens)