Search for new chair begins at out-of-town retail chain
Out-of-town retail chain Matalan is reportedly searching for a new chairman.
This follows confirmation that the Knowsley-based business has achieved £25m of funding through the Government’s Coronavirus Large Business Interruption Loan Scheme (CLBILS).
It is also in the wake of recent trading figures that showed, understandably, since the pandemic lockdown, that its sales had slumped in the nine weeks to May 2.
The retailer, set up by John Hargreaves, the son of a Liverpool docker, said it has taken 5,000 of its staff off furlough to support the re-opening of 175 of its 232 UK stores.
A company statement said: “Upon reopening, store performance has been strong and ahead of expectation.
“Like-for-like store sales performance for re-opened stores on the days they were trading to 30 May 2020 was 14.6% ahead of last year.”
Sky News is reporting that Mr Hargreaves has appointed Redgrave Partners to handle the search for a new chairman, claiming John Mills is preapring to step down.
Mr Mills previously held the role of chair until 2012.
He was then replaced by Allan Leighton, chairman of The Co-operative Group since February 2015, former CEO of Asda, former chief executive of Pandora, and former non-executive chairman of the Royal Mail, before taking over again as Matalan chair in 2018.
It is also reported that Mr Hargreaves has agreed to subordinate £50m of outstanding debt he was owed by the company, which is a debt that ranks after other debts should a company fall into liquidation or bankruptcy.
Matalan has been contacted for comment.
