Matalan has completed the £25m sale of its head office in Knowsley, Liverpool to a company already owned by the retailer’s founder.
In a statement the discount retailer said that the sale represents the “planned completion of transactions” set out during the financing activity undertaken in June, following the “significant Covid-19 driven disruption” to the business.
The Liverpool site was sold to JMax Knowsley Limited, a company owned by Matalan founder John Hargreaves. The store stated that the money made on the sale will be used to reduce the company’s “overall level of indebtedness”.
Since the UK imposed social distancing measures back in March, Matalan has seen a sharp decline in sales. In October the company revealed that profit at the retail chain dropped 44% to £25.8m during the 13 week period ending 29 August.
At the time Steve Johnson the firm’s executive chairman said that the store would “remain cautious” as they trade through the autumn/winter season.
Speaking in October Johnson said: “The recent resurgence in Covid-19 and reinstatement of government restrictions will without doubt create further pressure on the economy and consumer behaviour in the coming months.”