// Lenders are set to inject up to £100 million in funds
// The deal will reduce Matalan’s gross debt by £260 million to £335 million
Matalan founder John Hargreaves has lost control of the fashion retailer he set up around 40 years ago, following a deal which will secure the future of the company.
Lenders Invesco, Man GLG, Napier Park and Tresidor are expected to seize the retailer tomorrow, agreeing to wipe £250 million off the company’s debt.
The lenders are also set to inject up to £100 million in funds, in a bid to secure the retailers future.
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The deal will reduce Matalan’s gross debt by £260 million to £335 million.
According to The Sunday Times, In addition to losing his business, Hargreaves, will not be repaid a single penny of either his £50 million loan to Matalan, which he agreed to subordinate throughout the Covid-19 pandemic, or the £18 million of lower ranking bonds he holds.
Last week, it was announced Matalan investors were close to finalising a takeover deal for the fashion retailer.
The fashion retailer employs 11,000 people and trades from 230 UK stores.