Matalan owner reportedly seeking £60m amid store closures
The owner of Matalan, John Hargreaves, is reportedly seeking a cash injection of £60m to support the fashion retailer through the Covid-19 pandemic, after the group was “forced” to close its 232 stores.
According to the Mail on Sunday, a statement issued to bondholders claimed the retailer had not faced “such difficult and unpredictable times” over the 35 years it has been trading.
Additionally, Matalan said that following the store closures, it has also “bolstered [its] liquidity by drawing down fully against [its] existing revolving credit facility having never before done so”.
The company said it will continue to trade online, but noted that deliveries are “taking a bit longer than expected at the moment”.
It comes after the news of all Matalan warehouse staff being offered furlough leave in light of the coronavirus pandemic.
The GMB said the move was a “massive win for victory and common sense”, and came after the union and workers put “sustained pressure” on the retailer.
The union said that the “massive pressure” was applied after it emerged that the company was ignoring guidelines and putting workers in danger through continued operation.
Workers at the Knowsley Distribution centre said they were being forced to continue working in “cramped, overcrowded conditions”, with bosses failing to comply with government advice on social distancing and stopping operations.
