Matalan’s anchor investment group has extended its existing debt facilities until mid-2029, allowing the clothing and homeware retailer’s turnaround plan more time.
No additional capital is involved in this latest deal. Instead Invesco, Tresidor, Man Group and Napier Park will allow Matalan longer to manage its existing debt. Therefore, cash flow can be put towards the retailer’s recovery.
Matalan had previously secured a further £25 million in funding from this core investor group to support its turnaround. Then in June, the retailer announced it had narrowed its pre-tax loss to £54.7 million as stronger margins and higher investment supported this plan.
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The retailer has completed 30 store refreshes during the year. Refitted stores outperformed the wider estate by around 12 per cent and delivered like-for-like sales rises of 10 per cent after refurbishment.
Matalan plans to refresh 40 stores in FY27, including 14 of its traditionally best-performing shops. It will open or relocate at least 10 stores.
Furthermore, a new app is due to launch later this year as the retailer invests further in digital growth.
The business has also been exploring expansion into Ireland after appointing Savills to identify potential retail park locations.
Matalan chief executive Henrik Nordvall, who joined the retailer on February 2, said: “We delivered strong EBITDA growth and improved gross margin in the period, despite a challenging and highly competitive retail environment, all while continuing to invest in the areas that are driving growth.”
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