UK-based fashion retailer Matalan’s founder John Hargreaves has stepped down to take part in the sale as a bidder.
The move is a distinct indication that he will participate in a recapitalisation process for the discount retailer.
More on the same, John said his intent is to be instrumental in positioning the business for long-term success.
The fashion group is burdened with over £ 500 million of debt from an earlier recapitalisation and needs to refinance £ 350 million of this in 2023.
Earlier this week, the retailer had agreed with over a majority of the holders of this tranche to extend the maturity by 6 months, to July next year, allowing a bidding process for Matalan to take place.
The noteholders have also agreed to provide up to £ 200 million of financing to any party that’s interested in buying the company.
If the sale process doesn’t result in transaction, the noteholders have committed to an alternative recapitalisation plan that would lead to material reduction of Matalan’s debt.
Founded in 1985 by John Hargreaves, Matalan – as of 2020 – had 13,000 employees and 230 stores in the UK, besides franchise stores in the Middle East.
