Jun 23, 2022
Matalan warns refinancing is crucial to avert collapse
Matalan has acknowledged it may not be able to continue operating if it is unable to finance a significant chunk of its debts by January, despite a recovery in trading. A much larger £350mn tranche of secured debt falls due for repayment early next year and will require refinancing. Debt markets for riskier borrowers in Europe remain largely dormant following Russia's invasion of Ukraine, although there is more sign of activity in the US. Matalan tested appetite for a debt refinancing in February but did not secure sufficient support. Bankers acting for Wm Morrison, the supermarket chain that also needs to refinance heavy short-term borrowings arising from its acquisition by a private equity group, have resorted to placing debt privately at a discount because of the difficulty in raising debt on public markets. Matalan said talks with lenders were "At an advanced stage" and that it believed it could complete the refinancing before January.
Related companies
Make a complaint about Matalan by viewing their customer service contacts.
