Matalan secures debt extension amid continued turnaround

Matalan has secured extensions to its existing debt facilities until mid-2029 from its anchor investor group, including Invesco, Tresidor, Man Group and Napier Park, giving the business more time to deliver its turnaround plan.

The extensions do not involve new capital, instead giving Matalan longer to manage its existing debt while channelling cash flow into a transformation programme that has already delivered measurable returns from store refurbishments and market-share gains.

The extensions come after the retailer saw improved financial performance.

In the 53 weeks to 28 February, Matalan's adjusted EBITDA increased by 24% to £69.4 million, while gross profit was up 6% to £538 million, helped by lower bought-in costs, reduced freight rates and favourable foreign exchange hedges.

It had also narrowed its pre-tax loss to £54.7 million as margin improvement and increased capital expenditure supported its turnaround plan.

The brand said it picked up 0.3 points of volume market share in the second half, based on Numerator Worldpanel data cited by the company, with womenswear leading that gain.

That momentum has carried into FY27. In Q1, revenue grew 2% year-on-year and adjusted EBITDA rose 45% to £14.9 million.

Where the investment is going

Matalan's store refresh programme has been the most visible result of the transformation plan. The retailer completed 30 store refurbishments in FY26, with refreshed locations outperforming the wider estate by 12%.

It has scheduled 40 more refreshes in FY27, including 14 of its traditionally best-performing stores, alongside at least 10 new or relocated stores.

The same investor group committed an additional £25 million to support the store programme in March, a separate injection of capital that preceded the maturity extensions announced today.

Beyond stores, the company said investment priorities include unified commerce, supply chain improvements and technology upgrades, with a new app due to launch later this year.

Matalan has also been exploring expansion plans in Ireland, after appointing Savills to identify potential retail park locations.

Dave Williams, Chief Financial Officer at Matalan, said: "The continued support of our anchor investors reflects their confidence in Matalan and our strategy.

"The extension to our debt facilities provides us with further flexibility to continue to invest as we drive sustainable profitable growth and build on the positive momentum we have created."