Matalan poised to fall into hands of lenders

Offers for the struggling chain were submitted ahead of the weekend, but the chain’s fate will now be decided by a trio of senior bondholders, including the lending arm of Invesco. 

Bondholders owed £350m by Matalan now effectively control the business after the retailer’s board failed in attempts to refinance its debt during the summer. 

Matalan’s debts were initially due to be repaid in January, but it secured a six-month extension while the sale process was carried out. 

According to The Telegraph, bondholders have slapped a £210m price tag on the business and are prepared to take control of the retailer if rescue bids do not hit those expectations. 

Non-binding offers were being considered on Friday afternoon after suitors were given a midday deadline to put forward their proposals. 

Matalan founder John Hargreaves is among the interested parties seeking a rescue deal. He is understood to be bidding alongside Wall Street fund Elliott Management as he attempts to regain control of the struggling chain. 

Hargreaves, who is himself one of Matalan’s lenders, is expected to face competition from CQS and Napier Park – the duo are among a separate group of hedge funds that have bought into Matalan’s junior debt and want to take control of the company. 

Matalan appointed former House of Fraser and New Look boss Nigel Oddy as its interim chief executive last month as it kicked off a formal sale process.

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