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John Hargreaves, the founder of Matalan, is preparing for a new fight with its lenders over its ownership ahead of a deadline for refinancing £350m in debt, according to Sky News.
Hargreaves reinstated himself as chairman of Matalan last month, and has since injected tens of millions of pounds into the business. Under the company’s new plan, outright control of the company would remain with Hargeaves and his family.
However, according to sources cited by the outlet some of Matalan’s senior creditors were likely to be “unconvinced by the proposal” and were preparing to push for the fashion and homewares chain to be put up for sale.
There are suggestions that Matalan’s family shareholders were proposing to inject £25m to £50m, although the official sum remains unclear.
A £350m bond is due to be repaid in January, while a further £130m instrument is scheduled for repayment a year later.
Based in Liverpool, Matalan employs 11,000 people and trades from 230 UK stores.
It also operates an e-commerce platform and has more than 50 overseas franchise stores.
Matalan has been contacted for comment.
