// Matalan searches for new chairman as John Mills steps down
// The retailer recently secured funds to help it survive through the Covid-19 crisis
Matalan is reportedly scurrying to find a replacement as chairman John Mills announces his resignation from the retailer.
The fashion retailer has appointed headhunters to identify a successor to Mills, who is also a veteran adviser to Matalan founder John Hargreaves, Sky News reported.
Mills is said to be preparing to step down as Matalan’s chairman for the second time, after the retailer managed to secure vital funds to help it survive through the coronavirus pandemic.
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- Matalan close to securing £50m funding from stakeholders
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Mills previously held the role until 2012, before being replaced by boardroom veteran Allan Leighton. He returned to the role in 2018.
Matalan, which trades from 232 UK stores, confirmed that it had borrowed £25 million under the Coronavirus Large Business Interruption Loan Scheme.
Hargreaves has also agreed to subordinate £50 million of outstanding debt he was owed by the company.
Matalan said on Friday that it had seen sales slump in the nine weeks to May 2.
It said it “unfurloughed” over 5000 workers in an effort to support the 175 reopenings thus far.
Like-for-like store sales performance for reopened stores on the days it was trading to May 30 was 14.6 per cent ahead of last year.
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