Matalan secures additional £25m funding to upgrade stores and boost growth

Fashion and homeware retailer Matalan has secured a commitment for an additional £25 million of funding from its core investor group: Invesco, Tresidor, Man Group and Napier Park, to continue supporting its multi-year store revamp programme.

If drawn - that is, if Matalan chooses to use the available funding - it will be invested in improving its product, stores and digital channels to strengthen its offering across everyday style, quality and value, and continue to drive market share gains.

Specifically, the retailer would use the investment to accelerate its rollout of 40 store upgrades now planned for the first half of 2026. Additional funds will also be used to invest in seasonal products to support key trading periods, the brand outlined.

The new round of investment follows the previous success of the brand’s multi-year store refresh programme in early 2025.

In April 2025, Matalan first announced that it has secured a £25 million of funding from its core investors group to support its multi-year business transformation plan, including the modernisation and expansion of its brick-and-mortar footprint.

In December 2025, the company announced that it had successfully completed the 30 planned refurbishments over the course of the year, with the refreshed stores already outperforming the wider retail network by 14% in sales, and some locations, including Rhyl, Hull, and Wrexham, reporting increases of 20% year on year.

"This commitment to providing additional funding reflects the confidence of our anchor investors in both the business and our strategy, as well as the strong strategic progress we have made and the growing momentum in the business," said Henrik Nordvall, CEO of Matalan, who joined the company in February 2026.

"We’re investing for growth and seeking to increase the pace of that investment in the areas we are seeing the strongest returns, including our stores and product offer, as we continue to strengthen our proposition around great style, quality and value and grow our market position."

In January, Matalan reported like-for-like sales growth of 2% in the third quarter of FY26, ending 28 November 2025, with EBITDA up 38% to £27 million. Sales also increased by 1% year-on-year in the nine weeks ending 2 January 2026, covering the crucial Christmas period.

Categories including women’s outerwear and men’s formalwear and sportswear performed particularly well in Q3. As a result, Matalan gained market share across both womenswear and menswear in the period, reflecting the renewed product offer and "significant improvements in brand perception".