Owner of Matalan Seeking Funding Amidst Covid-19 Struggles

  • Matalan owner seeking £60m amid store closures
  • 232 stores closed due to Covid-19 pandemic
  • Retailer bolsters liquidity by drawing down existing revolving credit facility
  • Continues trading online with longer delivery times
  • Warehouse staff offered furlough leave after union pressure

The owner of Matalan, John Hargreaves, is reportedly seeking a cash injection of £60m to support the fashion retailer through the Covid-19 pandemic after being forced to close its 232 stores. The company has also bolstered its liquidity by drawing down fully against its existing revolving credit facility for the first time. Matalan will continue to trade online, but deliveries are taking longer than expected. This comes after all Matalan warehouse staff were offered furlough leave following union pressure due to the retailer ignoring guidelines and putting workers in danger through continued operation.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Matalan’s financial situation during the pandemic, its store closures, and the company’s decision to offer furlough leave to warehouse staff. It also mentions the union’s involvement in pressuring the company to follow government guidelines on social distancing.
Noise Level: 4
Noise Justification: The article provides relevant information about Matalan’s financial situation during the pandemic and its decision to close stores. It also mentions the company’s online trading continuation and workers being offered furlough leave after union pressure. However, it could benefit from more in-depth analysis of long-term trends or possibilities for the retail industry.
Financial Relevance: Yes
Financial Markets Impacted: Matalan’s financial situation impacts its bondholders and may affect its stock prices or credit ratings
Financial Rating Justification: The article discusses the retailer Matalan seeking a cash injection to support its operations during the pandemic, which directly pertains to financial matters and has potential implications for its financial markets and company performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk