Matalan lenders could win auction - report
A news report has suggested that a group Matalan’s biggest lenders are close to a win in the auction for the business, beating company founder John Hargreaves who has teamed up with Elliott Advisors on his own bid.
Sky News also said that the senior lenders are also talking to interim CEO Nigel Oddy about possibly making his role permanent.
However, none of the parties involved have commented on the accuracy of the report.
It’s claimed that the lenders — which include Invesco and Man GLG — could reach a deal “within the next fortnight” and are prepared to inject as much as £100 million of new funding into the business.
Matalan has said that several bids have been received and that it’s assessing them with “constructive discussions continuing with interested parties and their advisers”.
It has also said that all transactions under consideration provide for a material reduction of Matalan's debt.
The company was founded by Hargreaves in 1985 and is approaching a major deadline for refinancing £350 million in debt.
The Liverpool-based business has 230 UK stores and 50 overseas franchise stores, plus an e-tail operation. It employs more than 11,000 people.
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