Senior bondholders call for talks over Matalan’s future
Matalan’s senior bondholders have reportedly called for talks over the retailer’s future as the cost-of-living crisis continues to bite into the company.
Lenders have sought the advice of financial services firm Perella Wellbeing to understand what their options are as they are set to receive a £350m payment next year, Sky News first reported.
Junior bondholders are said to have been appointed as advisors investment bankers Houlihan Lokey, as they are owed £80m.
According to individuals close to the matter, refinancing talks are set to go on during the summer.
Sources have said founder John Hargreaves will be forced to inject additional funding into the company to maintain control.
Employing 10,000 people in over 230 stores across the UK, Matalan is one of the biggest private retailers in the country. The company made the headlines in February when a UK judge rules Hargreaves would need to pay £135m of taxes from 20 years ago, when he sold Matalan shares.
“Matalan is continuing to evaluate alternatives and monitor market conditions with respect to a potential refinancing of its outstanding indebtedness,” the retailer said following the ruling.
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