Matalan lenders prepare to take control of business

Matalan’s lenders are preparing to take control of the business following a deadline for rescue bids on Friday 21 October, according to reports.

The Telegraph reported that bondholders, who were owed £350 million by Matalan after the board failed in attempts to refinance its debt, have set a £210 million minimum price for the business and are willing to take control of the company if rescue bids do not meet the appropriate value.

Matalan's debts were due to be repaid in January 2022, but bondholders agreed to a six-month extension whilst an auction was run.

John Hargreaves, Matalan’s founder, is reportedly trying to take back control of the business and is understood to be bidding alongside Wall Street fund Elliott Management and Frasers Group’s Mike Ashley.

Last month, Matalan announced the appointment of Nigel Oddy as Interim CEO, following an extensive recruitment process. Oddy has significant retail experience in senior leadership roles, most recently at New Look as CEO and formerly COO.

Oddy's priorities will focus on the delivery of the ongoing growth strategy; to drive performance in the core business; further build and develop omni-channel capabilities; unlock and deliver new growth opportunities; and reposition the brand.