// Matalan appoints Nigel Oddy as interim chief executive as it announces the start of a strategic sales process
// Founder John Hargreaves is set to take part in the sales process and has stepped down as chairman
Matalan has brought in former New Look chief executive Nigel Oddy as its new interim CEO as it announces the start of a “strategic” sales process.
Oddy will join the fashion retailer from the start of next month, after leaving New Look in June.
Matalan said he will help to deliver a growth strategy and drive performance while repositioning the brand as consumer spending slows amid soaring inflation.
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Hargreaves said: “Matalan is a business that has been in my DNA since the day I founded it in 1985. I am stepping down as chairman so that I can participate in the strategic sales process as a bidder. My focus and absolute commitment will remain to do what I believe is in the best interests of the company and all its stakeholders, in particular the 11,000 people we employ.
“My intention is to be instrumental in positioning the business for long-term success. I am delighted to welcome Nigel Oddy as the business’s new CEO and am confident Matalan is in good hands.”
Matalan has kicked off a strategic sales process in order to cut the group’s debt and strengthen its financial position and chairman and founder of the business John Hargreaves will step down as chair, after rejoining the business in July, in order to participate in the sales process as a bidder.
The company announced it had secured an agreement with over a majority of its First Lien Secured noteholders on the key terms of a “comprehensive recapitalisation.”
A group of noteholders has offered to provide £200m of senior secured, stapled financing to interested parties, as well as pledging to support Matalan’s intent to extend the maturity of First Lien Secured Notes of £350m maturing in January 2023 by six months.
The retailer had been approaching a January deadline for refinancing £350m in debt, with an additional £130m instrument scheduled for repayment the year after.
Matalan also announced its revenue for its second quarter, the 13 weeks to August 27, totalled £286.4m, up from £264.7m in the same period last year while also confirming that Paul Copley has been appointed to the board as an independent non-executive director.
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