Matalan names Nigel Oddy as interim chief executive as it searches for buyer

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Matalan has appointed retail veteran Nigel Oddy as chief executive on an interim basis, while founder and chair John Hargreaves is to step down.

Nigel Oddy-people-prospect

Nigel Oddy will become Matalan’s interim chief executive in October

Oddy, who previously held the top job at fellow fashion retailer New Look, and has also led businesses such as The Range and House of Fraser, will join the business from October 3.

Matalan said that his role will be to drive the current growth strategy of the brand, build up its omnichannel capabilities and reposition the brand as a whole.

Oddy commented: “I am delighted to be joining Matalan and very much look forward to working with the wider team, which includes many long-established suppliers and franchise partners, as we progress with the execution of the growth strategy of this unique and iconic retail business.

“I have followed Matalan closely through my career and have admired its excellent value and quality-focused credentials.

“I have noted its particular momentum in recent years in driving ahead with its mission to offer an excellent omnichannel experience for the millions of families it serves up and down the nation, and beyond.

“Matalan has a long-standing and loyal customer base, and we need to continue to offer them, as well as new customers, what the business has been known for over the past 37 years – great product at fantastic prices. Now more than ever, value is so important to every shopper.”

Matalan has also announced a refinancing agreement and commenced a formal strategic sale process.

The fashion retailer has secured an agreement with the majority of its first lien secured noteholders.

The agreement includes an extension of the maturity of the first lien secured debt for a significant period, a material reduction in the total debt of the group and a significant strengthening of Matalan’s financial position.

To fund this, the retailer has launched a sale process, whereby the noteholders have offered to provide £200m of senior secured, stapled financing to interested parties.

In line with governance protocols, Matalan founder John Hargreaves will step down from his position of chair.

Hargreaves said: “Matalan is a business that has been in my DNA since the day I founded it in 1985. I am stepping down as chair so that I can participate in the strategic sales process as a bidder.

“My focus and absolute commitment will remain to do what I believe is in the best interests of the company and all its stakeholders, in particular the 11,000 people we employ.

“My intention is to be instrumental in positioning the business for long-term success. I am delighted to welcome Nigel Oddy as the business’ new CEO and am confident Matalan is in good hands.”