Matalan’s founder John Hargreaves makes last attempt to retain control

John Hargreaves has reportedly made a last attempt to keep control of Matalan, making a 50-50 offer with Elliot Advisors’ private equity arm.

The 78-year-old businessman, who floated the company almost 25 years ago, is among one of Matalan’s four potential buyers. 

The other three are the retailer’s senior lenders and private equities Alteri and OpCapita, the Times first reported. 

Matalan’s lenders – which reportedly include investment manager Invesco as well as UK hedge funds Tresidor Investment Management and Man GLG – kicked off the sale of the debt-ridden company in late September. 

The retailer has racked over £500m of debt in the past couple of years as a result of the pandemic’s impact on sales and, more recently, inflationary pressures. 

Matalan has managed to have a deadline to refinance £350m worth of debt be pushed back from January to July. 

Hargreaves, the Times reported, believes his bid could be successful due to his intimate knowledge of the company. His ownership of the retailer’s IT platform could also swing the bidding process in his favour.

Matalan declined to comment.