Matalan founder to lose out as lenders set to take over
Clothing retailer Matalan’s founder John Hargreaves is set to lose control of the chain he started in 1985, as a syndicate of lenders are set take ownership.
The Sunday Times and Drapers have reported that the group, comprised of Invesco, Man GLG, Napier Park and Tresidor, have agreed to exchange around £150m of what they are owed in return for equity in the business.
There will also be an injection of around £100m of fresh capital into the business.
The retailer faces a bill of £350m.
This comes after news from earlier this month that Invesco and Man GLG could secure a deal to take over the company within two weeks.
Hargreaves was replaced by Nigel Oddy as interim CEO in September, but teamed up with American group Elliott Investors to gain control of the retailer in December.
Nigel Oddy is believed to be in negotiations with the group of lenders over whether he will remain in position as CEO.
The deal would reportedly save over 11,000 jobs.
Headquartered in Liverpool, Matalan trades through 230 UK stores, an online platform, and operates 25 overseas franchise stores.