Matalan creditors fashion bailout for struggling chain

Lenders to Matalan have taken control of the struggling value retail chain in a debt-for-equity swap, pledging to inject £100m into the business.

Creditors Invesco, Man GLG, Napier Park and Tresidor have agreed to exchange about £150m in debt for equity in the company, after a sale process failed to produce any bids.

The lenders plan to invest in the chain’s stores, logistics network and website, in an attempt to return to profitability. The company has previously struggled to make the transition to online retailing.

The deal brings an end to founder John Hargreaves’ 40-year tenure in control of the company. The veteran retailer said he was “disappointed” by Matalan’s decision to accept the bailout.