// Matalan completes £25m sale of Liverpool HQ
// The retailer’s HQ is located in Knowsley
// The sale was planned back in June, and follows significant disruption to the business
Matalan has finalised the £25 million sale and leaseback of its Liverpool head office to a company already owned by founder John Hargreaves.
The building is located in Knowsley, is Jonmar Limited’s sole asset – which is the company in the Matalan group that owns the head office.
Jonmar Limited belongs to JMax Knowsley Limited – the company owned by Hargreaves.
The sale was planned back in June, and follows significant disruption to the business in the wake of the Covid-19 pandemic.
The retailer has around 230 stores across the UK.
The £25 million proceeds will repay the firm’s debt on a revolving credit facility provided by the coronavirus large business interruption loan scheme.
It will also pay part of the pre-existing £50 million revolving bank credit facility.
Matalan has furloughed more than 11,000 employees since the furlough scheme was announced by Chancellor Rishi Sunak earlier this year.
In June, Hargreaves agreed to subordinate a £50 million loan to the company and pledged to inject £25 million in equity if the business owes more than a combined £50 million through its revolving credit facility and government loans by the end of this year.