Matalan seeks new buyer amid cost-of-living crisis
Matalan is on the market for a new buyer amid rising costs and inflationary pressures, according to The Sunday Times.
The news comes after John Hargreaves, who returned to the value retailer as Executive Chairman in July, proposed to inject tens of millions of pounds into the business last month, in exchange for his family retaining outright control of the company.
However, the founder is understood to be working with advisors at Lazard to search for either a buyer for the entire business or an investor to provide fresh equity.
Matalan, which reported underlying profits of £100 million last year, has £350 million of secured debt falling due at the end of January.
The discount chain's £350 million bond is due to be repaid in January 2023, whilst a further £130 million is scheduled for repayment a year later. In June, Matalan reported a rise in annual revenues from £744.1 million in 2021 to £1.03 billion.
Despite a rise in revenues, the company reduced its number of employees from 11,558 in 2021 to 10,837 in 2022, mostly across retail and distribution roles. Matalan also secured a £60 million revolving credit facility for up to 18 months to further strengthen its balance sheet.