Matalan founder returns as chairman

THE millionaire founder of Matalan is returning to run the value chain, in an attempt to turn it around until a permanent boss is found.

John Hargreaves, who started the company with a single store in Preston in 1985, is taking over as executive chairman after a 15-year absence.

He will replace Steve Johnson, who has been at the helm of Matalan since June 2020 and was previously chairman at bed retailer Dreams. Mr Hargreaves is likely to preside over a debt refinancing worth £350m before it falls due early next year. An arrangement could be key to Matalan’s survival.

The Monaco-based entrepreneur said: “Nobody could have predicted the pandemic or the more recent macropressures affecting the retail industry.

“Matalan’s navigation of these challenges, our market share gains, and the top-line performance announced in our trading updates, are testament to Steve’s leadership and our colleagues’ dedication.”

A search for a chief executive has been under way since the beginning of the year, with an appointment expected later this year. Mr Johnson initially joined as a non-executive chairman and agreed to take on enhanced responsibilities through the pandemic. It came after Jason Hargreaves, the son of the founder, stepped down as chief executive in 2020 after seven years as boss.

In May, the chain posted an increase in quarterly sales to £286.5m, from £221.8m the year before, and underlying profits of £20.2m up from £15.9m.