Founder Collaborates with Lazard Advisors to Secure Buyer or Investors
- Matalan considering sale amid inflation impact
- Founder John Hargreaves working with Lazard advisors
- Refinancing deadline in January for £350m debt
- Possible injection of new equity or finding a buyer
Matalan is reportedly considering a sale of its discount chain due to the impact of inflation and weaker consumer demand. Founder John Hargreaves is working alongside financial advisors at Lazard to either secure a potential buyer for the entire business or find investors to inject new equity. This move comes ahead of a January deadline for refinancing £350m in secured debt, followed by a £130m repayment a year later. Last month, Hargreaves reinstated himself as chairman and invested tens of millions into the company. The proposed plan would keep control with Hargreaves’ family. Some senior creditors may be unconvinced by this proposal and are preparing to push for Matalan to be put up for sale.
Factuality Level: 8
Factuality Justification: The article provides relevant information about Matalan’s potential sale due to financial issues and includes sources from reputable publications like The Sunday Times and Sky News.
Noise Level: 3
Noise Justification: The article provides relevant information about Matalan’s potential sale due to financial issues and refinancing deadline but lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Matalan’s refinancing deadline and potential sale impact the company’s debt and equity situation
Financial Rating Justification: The article discusses Matalan’s financial struggles due to inflation and weaker consumer demand, which affects its refinancing deadline and potential sale, making it relevant to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text
www.retailsector.co.uk