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A group of investors who have lent hundreds of millions to Matalan are closing in on a deal to take over the company, according to reports from Sky News.
Senior lenders, including big names such as Invesco and Man GLG, could agree a deal in the next two weeks which would inject around £100m of new funding into the retailer to secure its short-term future.
The outlet also cites sources that believe the lenders are in talks with current interim CEO Nigel Oddy about making his current role permanent.
The group of lenders have been competing with other rival bidders including founder John Hargreaves, who is being backed by American investor Elliott Advisers.
Matalan said in a statement just before Christmas: “The company is currently assessing all the bids and constructive discussions are continuing with interested parties and their advisers,” it said.
“In addition, the ad hoc group of existing First Lien Noteholders represented by Invesco, Man GLG, Napier Park and Tresidor, which now holds over 70% of the First Lien Secured Notes, has reconfirmed its commitment to a recapitalisation if necessary.
The homeware retailer, started in 1985, faces a deadline to refinance £350m of debt.
