Matalan put on market as former New Look boss named interim chief
The news came as the group said that chairman John Hargreaves, who founded the company in 1985, would be stepping down from his role.
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Matalan has been put up for sale as the fashion retailer also announced a new chief executive officer.
The UK high street chain said former New Look boss Nigel Oddy will take over as interim CEO.
It comes as the group said that chairman John Hargreaves, who founded the company in 1985, will step down from his role so he can take part in the auction process for the company.
My focus and absolute commitment will remain to do what I believe is in the best interests of the company and all its stakeholders, in particular the 11,000 people we employ
Mr Hargreaves is currently the retailer’s owner but has spent the past few months in a tussle with bondholders ahead of a mammoth debt repayment.
A £350 million bond is due to be repaid in January.
Mr Hargreaves has reportedly offered to pump further capital into the business in a bid to retain control of the company.
A group of bondholders confirmed on Monday that they have offered to provide £200 million worth of financing and committed support to Matalan’s intention to extend the maturity of the £350 million bond.
I am delighted to be joining Matalan and very much look forward to working with the wider team, which includes many long-established suppliers and franchise partners, as we progress with the execution of the growth strategy of this unique and iconic retail business
Mr Hargreaves said: “Matalan is a business that has been in my DNA since the day I founded it in 1985.
“I am stepping down as chairman so that I can participate in the strategic sales process as a bidder.
“My focus and absolute commitment will remain to do what I believe is in the best interests of the company and all its stakeholders, in particular the 11,000 people we employ.”
Mr Oddy will now take over at the helm of the retailer, which runs 230 UK stores, from October 3.
“I am delighted to be joining Matalan and very much look forward to working with the wider team, which includes many long-established suppliers and franchise partners, as we progress with the execution of the growth strategy of this unique and iconic retail business,” the new chief said.
“I have followed Matalan closely through my career and have admired its excellent value and quality focused credentials.”
Matalan also revealed that revenues increased by 8.2% to £286.4 million over the 13 weeks to August 27, compared with the same period last year.