Retailer Looks to Raise Cash, Fights Accountancy Giant in Court
- Matalan seeks £29m sale of its Liverpool-based headquarters
- Owner John Hargreaves agrees to £50m loan and pledges additional £25m in equity
- Retailer reopened 175 out of 230 stores since May
- Hargreaves brings legal action against PwC for misguided tax advice
Matalan is reportedly seeking a sale of its Liverpool-based headquarters to raise around £28.5m through a sale and leaseback deal amid the ongoing coronavirus pandemic. The retailer’s owner, John Hargreaves, has also agreed to a £50m loan and pledged an additional £25m in equity if Matalan owes more than £50m through its revolving credit facility and government loans by the end of next year. Since homeware was classed as an essential service back in May, Matalan has reopened 175 of its 230 stores. The news comes after Hargreaves brought forward legal action against accountancy firm PwC, claiming he received ‘misguided’ tax advice that led to substantial tax liabilities and a £35m payment to HMRC in 2018, with further claims of £135m still sought. Matalan has declined to comment on the reports.
Factuality Level: 7
Factuality Justification: The article provides accurate information about Matalan’s plans for selling its headquarters and raising funds, as well as details on John Hargreaves’ legal dispute with PwC. However, it lacks direct quotes from Matalan or other sources to confirm the information and could benefit from more context on the company’s financial situation.
Noise Level: 4
Noise Justification: The article provides relevant information about Matalan’s financial situation and the actions taken by its owner John Hargreaves. It does not contain any irrelevant or misleading information, but it could benefit from more analysis of long-term trends or possibilities in the retail industry and exploring consequences for those affected by the decisions made.
Financial Relevance: Yes
Financial Markets Impacted: Matalan’s financial situation and its potential sale of headquarters
Financial Rating Justification: The article discusses Matalan seeking a sale of its headquarters to inject cash into the business, as well as the owner’s legal action against an accountancy firm for tax advice. This pertains to financial topics and impacts the company’s financial situation and operations.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses financial issues faced by Matalan due to the COVID-19 pandemic and legal disputes with HMRC.
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