Hargreaves ‘in line for £250m dividend’
MATALAN founder John Hargreaves is reported to be lining up a £250m dividend as part of a multi-million pound refinancing of the North West discount chain.
Mr Hargreaves, who recently withdrew the Skelmersdale business from sale after bidders failed to meet his £1.5bn asking price, is looking at a £525m deal with banks and other investors, accordign to the Sunday Times.
The firm is understood to be seeking funding partly to pay down debts of around £260n, with the rest of the payout destined for Mr Hargreaves, former Liverpool market trader who is now based in Monaco.
The potential dividend payment, while huge, is still small compared to the £1.2bn paid to BHS and Topshop owner Sir Philip Green in 2005.
Mr Hargreaves, who opened the first Matalan store in Preston in 1985, took the retailer private in an £827m deal backed by £410m of debt three years ago.
The company has performed strongly during the recession. Operating profits reached £102m million in the year to end of February2009 – up from £89.4m the previous year.
Trading figures for the Christmas period showed like-for-like sales were up by 9.3% in the 13 weeks to January 2, with total sales ahead 10.4% to £362m.
Matalan was not available to comment on the reports.
