Matalan founder John Hargreaves loses control in rescue deal

15th January 2023

// Lenders are set to inject up to £100 million in funds

// The deal will reduce Matalan’s gross debt by £260 million to £335 million

Matalan founder John Hargreaves has lost control of the fashion retailer he set up around 40 years ago, following a deal which will secure the future of the company.

Lenders Invesco, Man GLG, Napier Park and Tresidor are expected to seize the retailer tomorrow, agreeing to wipe £250 million off the company’s debt.

The lenders are also set to inject up to £100 million in funds, in a bid to secure the retailers future.

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The deal will reduce Matalan’s gross debt by £260 million to £335 million.

According to The Sunday Times, In addition to losing his business, Hargreaves, will not be repaid a single penny of either his £50 million loan to Matalan, which he agreed to subordinate throughout the Covid-19 pandemic, or the £18 million of lower ranking bonds he holds.

Last week, it was announced Matalan investors were close to finalising a takeover deal for the fashion retailer.

The fashion retailer employs 11,000 people and trades from 230 UK stores.

Fashion News

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Fashion News

15th January 2023

Jasdip Sensi

// Lenders are set to inject up to £100 million in funds

// The deal will reduce Matalan’s gross debt by £260 million to £335 million

Matalan founder John Hargreaves has lost control of the fashion retailer he set up around 40 years ago, following a deal which will secure the future of the company.

Lenders Invesco, Man GLG, Napier Park and Tresidor are expected to seize the retailer tomorrow, agreeing to wipe £250 million off the company’s debt.

The lenders are also set to inject up to £100 million in funds, in a bid to secure the retailers future.

Subscribe to Retail Gazette for free

The deal will reduce Matalan’s gross debt by £260 million to £335 million.

Last week, it was announced Matalan investors were close to finalising a takeover deal for the fashion retailer.

The fashion retailer employs 11,000 people and trades from 230 UK stores.

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