Sep 26, 2022
Matalan founder quits as chair to take part in sale ‘as a bidder’
The company said on Monday that it had agreed with "Over a majority" of the holders of this tranche to extend the maturity by six months, to July next year, allowing a bidding process for the retailer to take place. If the sale process does not lead to a transaction, the noteholders have committed to an alternative recapitalisation plan that would "Result in a material reduction of Matalan's debt" and an extension of the £350mn tranche of debt by more than four years, to September 2027. Hargreaves remains a natural owner given his deep knowledge of the business and the ties between Matalan and other companies owned by his family. Trading at Matalan has recovered well since the height of the pandemic, with the company reporting second-quarter sales of £286mn, up from £265mn last year, but a slip in profit as costs increased. Matalan has set out a business plan that envisages revenue rising to £1.44bn by 2026, up from £1.03bn last year, with ecommerce accounting for a quarter of that total against less than a fifth at present.
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