Matalan is reportedly preparing to enter the Irish market as it looks to push ahead with its store expansion plans.
The retailer has appointed Savills to explore potential locations across Ireland, with the business understood to be focusing on retail park units.
According to The Times, no deal has been completed yet.
Matalan currently operates around 270 stores across the UK and internationally, serving around 11 million shoppers per year.
It is expected to compete with value and mid-market fashion and homeware chains in Ireland, including Penneys and Next, as it sets its sites on establishing a foothold in the market.
Its latest accounts, for the year to the end of February 2025, showed revenues of £985m and pre-tax losses of £67m.
Matalan was taken over by a group of lenders in 2023 after building up more than £500m of debt during the pandemic, and the subsequent period of high inflation.
The group, which included Invesco, Man GLG, Napier Park and Tresidor, completed a debt-for-equity swap after a sale process failed to secure a satisfactory bid.
Matalan has since been working through a wider turnaround plan, including new store openings, refurbishments and improvements to its clothing and homeware ranges.
Last year, it revealed plans to open new stores in England and Northern Ireland and upgrade existing shops as part of a £25m investment programme.
The business has also been improving the quality of its menswear and childrenswear, while acknowledging in its accounts that there is still “more work to do” on womenswear and homewares.
In October, Matalan appointed Henrik Nordvall as chief executive. Nordvall previously spent 17 years at H&M, most recently as managing director of H&M UK and Ireland, where he oversaw revenues of $1.5bn.
Matalan already has a presence in Northern Ireland, having traded there since the early 2000s. While the retailer has historically favoured out-of-town retail parks, it opened its first city-centre store in Belfast in 2018.
However, finding suitable space in the Republic of Ireland could prove challenging. A CBRE report published in September found that Irish retail parks were operating at near full occupancy, while MSCI reported a national vacancy rate of 3.9 per cent.
Some space has been freed up following the closure of New Look stores last year and the recent liquidation of EuroGiant, which led to the closure of 77 shops, some of them in retail park locations.
Retail parks have remained attractive to occupiers and investors, with CBRE noting that consumers are increasingly drawn to the format because of convenience, access and larger store footprints.
The potential Ireland launch would mark a significant step in Matalan’s turnaround strategy as it looks to grow beyond its core UK estate and rebuild momentum under its new leadership.
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