// Matalan interim chairman Tim Isaacs has left the board and departed from the business following its sale
// The fashion retailer has been seeking a £350m credit bail out and has now reached deal that will include a “significant reduction” in gross debt
Matalan interim chairman Tim Isaacs has left the business following the acquisition of the fashion retailer earlier this month.
Isaacs became interim chairman in September after Matalan chair John Hargreaves stepped down as he made a bid to buy the business. The retailer appointed Nigel Oddy as interim CEO at the same time.
It is understood that Matalan’s new owners are seeking a new leader.
Hargreaves, who had teamed up with private equity firm Elliott Advisors, lost out after the value retailer was snapped up by a group of investors including Invesco, Man GLG, Tresidor and Napier Park.
It had been seeking a £350 million credit bail out and has now reached deal that will include a “significant reduction” in gross debt from £593 million to £336 million.
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At the time, Hargreaves said he was “disappointed” at the decision as it fails to deleverage its balance sheet and secure a long-term owner for the retailer.
Hargreaves Family Private Office said:” John Hargreaves and the Hargreaves family are disappointed by today’s announcement by Matalan.
“From the day he founded the company in 1985 through to the current sales process, John’s focus and commitment has been to act in the best interests of the company, its employees, suppliers and business partners.
“The Hargreaves family and Elliott bid would have left Matalan with less than £200m of debt and ultimately ensured it was best positioned for long-term success.
“John Hargreaves does not believe that the deal announced today with the first lien investors is an optimal outcome for Matalan and its key stakeholders.
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