Matalan has secured a commitment for a further £25m in funding from its core investor group as the business looks to accelerate investment across stores, product and digital.

The funding, provided by investors Invesco, Tresidor, Man Group and Napier Park, may not necessarily be fully drawn down, but if utilised it will support the retailer’s next phase of growth following strong performance from its ongoing transformation programme.

Matalan said the additional capital will be directed towards key growth areas including its product offering, store estate and digital capabilities as it sharpens its focus on “everyday style, quality and value”.

A major focus of the investment will be the continued rollout of the retailer’s store refresh programme, which has already shown encouraging results. Matalan said refurbished stores have outperformed the wider estate by 12 per cent, prompting the retailer to accelerate the upgrades.

The company now plans to complete 40 store refurbishments in the first half of 2026, using the additional funding to speed up the programme.

Alongside store improvements, the funding will also support increased investment in seasonal product ranges designed to drive performance during key trading periods.

The latest investment follows a similar £25m funding injection from investors in early 2025, which helped kickstart the store revamp initiative. With refreshed locations delivering stronger results, the retailer’s backers have now committed further capital to build on that momentum.

Recent trading figures also suggest the strategy is gaining traction. In its third-quarter results from August to November, Matalan reported pre-IFRS16 EBITDA rising 38 per cent to £27m, supported by like-for-like sales growth of 2 per cent alongside improved margins and operational efficiencies.

Chief executive Henrik Nordvall said the additional backing from investors reflected growing confidence in the company’s strategy.

“This commitment to providing additional funding reflects the confidence of our anchor investors in both the business and our strategy, as well as the strong strategic progress we have made and the growing momentum in the business,” he said.

“We’re investing for growth and seeking to increase the pace of that investment in the areas we are seeing the strongest returns, including our stores and product offer, as we continue to strengthen our proposition around great style, quality and value and grow our market position.”

The latest funding comes as value-focused retailers continue to compete aggressively for market share amid ongoing pressure on consumer spending, with Matalan positioning itself as a destination for affordable fashion and homeware.