Matalan receives £25m funding as part of January takeover deal

Matalan, the Knowsley-based out-of-town discount retailer, has received £25m in new funding as part of its acquisition in January this year.

Its four lenders, Invesco, Man GLG, Tresidor and Napier Park, took control of the business that was founded by Liverpool docker’s son, John Hargreaves, as a market stall in 1985.

But he stepped down as executive chairman in September last year to launch a bid to buy the business.

The deal by the four lenders to take overall control of the retailer saw them reduce debt in the business by £260m to £335m.

They also pledged to provide £100m of new equity and offer new shares to potential investors, including Hargreaves.

Matalan today (June 22) announced that, under the terms of the recapitalisation transaction which completed on January 26, 2023, it has exercised its option to issue the second tranche of £25m Super Senior Notes and has received the net proceeds of the issuance.

In late March, Matalan announced the appointment of senior directors, with Karl-Heinz Holland installed as the company’s new chair, Jo Whitfield, former CEO of Co-op Food, as the new CEO, and Nigel Oddy, interim CEO of Matalan, concluding his six-month role.

Michael Phelps, partner at Tresidor Investment Management, one of the anchor investors in Matalan, said at the time: “We are absolutely delighted that Karl-Heinz and Jo have joined Matalan to oversee the next stage of the company’s development.

“Anyone close to the retail world will know the experience and focus that both Karl-Heinz and Jo will bring to their roles. They have a proven track record of making positive impacts in value retail and are the perfect fit for Matalan as it focuses on this next stage of its growth.

“They will provide strong leadership and know-how which will help accelerate the transformation of the company.”