Matalan pulls plug on sale process

FASHION and homewares retailer Matalan has scrapped its sale process, after bids came in below founder John Hargreaves’ asking price.

The Monaco-based tycoon, who founded the Skelmersdale-based company, was said to have been looking for £1.5bn.

Matalan said in a statement it had closed down the potential sale process, but did not give a reason.

However, sources close to the sale process said offers that came in were not high enough to tempt Hargreaves, who took the firm private for £817m in 2006.

Private equity houses including CVC, TPG and Advent International all registered an interest in making a bid for Matalan last year. But the sticking point was on price.

Matalan brought in Goldman Sachs in December to run the sale process alongside PricewaterhouseCoopers.

The sale of another successful North West retailer Pets at Home for a bumper £955m – much higher than expected – fuelled hopes in the corporate finance community that the deal would go ahead.

Last month the firm, which runs 205 stores mostly outside town centres, posted strong trading for the Christmas period.