Matalan board eyes January sale
Matalan is looking to complete its sale by the end of the month having received bids from a number of interested parties in order to meet imminent debt commitments. The Liverpool-based discount retailer says it is “currently assessing all the bids and constructive discussions are continuing with interested parties and their advisers.”
Founder John Hargreaves quit as chairman in December to pursue a bid for the business he grew from a market stall in 1985. The business now employs 11,000 people across 230 stores and its ecommerce operation.
Sky News has reported that Monaco-based Hargreaves is working with American investor Elliott Advisers, which holds a stake in one of the debtor funds in Matalan.
When the sale process started in October 2022 it was reported that the business would be valued at £210m.
In addition, the company insists the ad hoc group of existing First Lien Noteholders (the ‘AHG’) represented by Invesco, Man GLG, Napier Park and Tresidor, which now holds over 70% of the First Lien Secured Notes, has reconfirmed its commitment to a recapitalisation if necessary.
In a statement Matalan said: “The company is looking to complete the sales process prior to the end of January 2023 and will provide a comprehensive update to the market at such time. All transactions under consideration provide for a material reduction of Matalan’s debt including the First Lien Secured debt, an extended debt maturity profile and any new funding that may be required. The stable and sustainable balance sheet will put the Company in a position of financial strength, allowing it to execute on its business plan and deliver its growth strategy.
“The outcome of the sales process will not impact the continued operations of the business or our colleagues, suppliers or other partners.”
