Matalan lenders close in on takeover of discount retailer

A general view of fashion retailer Matalan store entrance in Oxford Street on January 03, 2019 in London, England
A general view of fashion retailer Matalan store entrance in Oxford Street on January 03, 2019 in London, England

A group of funds including Invesco and Man GLG is close to securing a deal to take control of one of Britain’s biggest homewares retailers, Sky News understands.

A group of financial investors which have lent hundreds of millions of pounds to Matalan are close to finalising a deal to take control of one of Britain’s biggest homewares retailers.

Sky News understands that the senior lenders, which include prominent City names such as Invesco and Man GLG, could strike a deal within the next fortnight.

Under a proposal submitted by the syndicate, the funds would inject close to £100m of new funding into Matalan in order to secure its short-term future.

Sources close to the process said the lenders were in talks with Nigel Oddy, the chain’s interim chief executive, about the possibility of making the role permanent if they succeed in gaining control of it.

The group of first-lien lenders have been vying to buy Matalan with rival bidders including its founder, John Hargreaves, who is being backed by the feared American investor Elliott Advisers.

Three days before Christmas, Matalan issued an update on the sale process which confirmed it had received bids from several parties.

“The company is currently assessing all the bids and constructive discussions are continuing with interested parties and their advisers,” it said.

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