Matalan seeks £29m HQ sale

Matalan is reportedly seeking a sale of its Liverpool-based headquarters as it looks to inject more cash into the business as the coronavirus pandemic continues. 

According to the Sunday Times, the retailer is looking to raise around £28.5m from a sale and leaseback of the property. 

Reports also suggest that Matalan owner John Hargreaves has agreed to a £50m loan and has pledged an additional £25m in equity if Matalan owes more than a combined £50m through its revolving credit facility and government loans by the end of next year. 

Since homeware was classed as an essential service back in May, Matalan has reopened 175 of its 230 stores. 

Matalan has declined to comment on reports.

The news comes after it was revealed that Hargreaves, who set up the business in 1975, has brought forward legal action against accountancy firm PwC after he claimed he received “misguided” tax advice.

He alleges the firm failed to give him correct guidance following his move to Monaco, leaving him with substantial tax liabilities for which he was pursued by HMRC.

According to the Financial Times, Hargreaves claims the accountancy giant was “negligent” when advising him on his relocation, and said he had followed advice by the firm on how to relocate to Monaco, resulting in shares in his company worth £237m being sold in one bulk transaction.

However, the sale reportedly led to a “lengthy legal battle” with HMRC, which later ruled that Hargreaves had not effectively given up his status as a resident of the UK. 

As such Hargreaves was ordered to pay £35m to HMRC in 2018 and it continues to seek a further £135m.