Adviser speaks on abandoned Matalan sale

THE lead adviser in the aborted sale of retailer Matalan said price and market uncertainty were behind the decision to abandon the process.

Colin Gillespie, corporate finance partner at PricewaterhouseCoopers in Manchester, said the process had only begun after the Skelmersdale company was approached by potential buyers.

Founder John Hargreaves was said to want at least £1.5bn for the strongly-performing business that he took private four years ago. But the private equity firms bidding baulked at such a value.

Mr Gillespie confirmed: “It became clear that the potential bidders for the business could not put together sufficiently attractive proposals to make further discussion worthwhile and the current uncertainty in the markets has undoubtedly had a bearing on the situation.”

He added: ““The owners only wish to sell the business if there is a certain and attractive value – neither of which were available.”

After a strong Christmas, Mr Gillespie said the business is “trading well ahead of the market and the competition” and would now continues without the distraction of a potential change in ownership.