Matalan founder John Hargreaves in last-ditch attempt to retain control
Matalan founder John Hargreaves is among four bidders who have placed a bid to take control of the fashion retailer, after the business was put up for sale in September.
Hargreaves, who recently stepped down from the board, has teamed up with private equity firm Elliott Advisors in a 50-50 bid for the retailer, The Sunday Times reported.
Hargreaves, who founded Matalan in 1985, would see his bid inject capital into the business, which employs 13,000 people across 230 stores in the UK.
Other interested parties are reported to be Matalan’s lenders, as well as Alteri and OpCapita.
The lenders that forced the sale process and are now bidding to take control of the chain includes Invesco, Tresidor Investment Management and Man GLG, part of investment firm Man Group.
Matalan has faced debts of over £500m and has faced pressure in recent months after credit insurers gradually removed cover for suppliers to the retailer.
The company has said that it expects to make underlying earnings of £30m this year, reaching £114m by 2026.