Lenders prepare to take control of Matalan as bid deadline hits

Lenders are reportedly preparing to take control of Matalan after the deadline for its rescue bids was hit last Friday (21 October).

According to The Telegraph, the bondholders who are owed £350m by Matalan “effectively control the business” after it failed to refinance the debts earlier this year. 

The Telegraph said it understands its lenders have now set a £210m minimum price for the business and are “prepared to take control of the company if rescue bids do not meet expectations”. 

Potential buyers were given until Friday to submit non-binding offers. Bids were still being considered on Friday after a deadline of 12pm was extended to allow interested parties to finalise offers.  

The lending arm of Invesco is reportedly among a trio of senior bondholders that will “decide the fate” of the retailer following the deadline, The Telegraph said.

Founder of Matalan, John Hargreaves, has been among those to bid for the business, working alongside investment firm Elliott Management to stake his claim. Elsewhere, Sir Michael Hintze’s CQS and Napier Park are among a separate group of hedge funds that want to take control of the company, sources told the Telegraph. Flacks Group has also made a bid for Matalan, its chairman said. 

City sources added that Asda, Morrisons and Next were reportedly encouraged to make bids for Matalan by its advisers, but declined to make offers in the end.

According to The Telegraph, Alteri, which launched a failed attempt to rescue Missguided a year ago, and Mike Ashley were said to be on Friday considering whether to make a last-minute bid.

Matalan had no comment at this stage.