Matalan chair is out as leadership shake-up begins
A new broom is expected to sweep in at Matalan following the acquisition of the fashion and lifestyle retailer last month.
It is understood Matalan’s new owners are seeking a new leadership team and the first casualty is interim chairman Tim Isaacs who left the business on 26 January, the day the acquisition was concluded.
Isaacs was appointed to the post in September to oversee the business during the sale process. His appointment allowed then Matalan chair John Hargreaves to step down as he made a bid to buy the business.
The retailer also appointed Nigel Oddy as interim CEO at the same time. He remains in the post as does Stephen Hill as chief financial officer. Oddy is expected to be involved in the search for senior board members on behalf of the owners.
Hargreaves, who had teamed up with private equity firm Elliott Advisors, lost out after the value retailer was bought in a final bidding round by a group of senior lenders including Invesco, Man GLG, Tresidor and Napier Park.
At the time the buyers announced a “successful recapitalisation transaction” that “delivers a de-levered and sustainable balance sheet, a substantial injection of new capital and meaningful maturity runway, providing a platform to drive a return to strong and sustained growth”.
The sale of the business and recapitalisation includes a £257 million day-one gross debt reduction, extension of debt maturities to 2027 and £100 million of new capital to invest in growth.
But a spokesperson for the Hargreaves Family Private Office at the time told Fashionnetwork.com they were disappointed to lose out at the auction and maintained that the Hargreaves bid "would have left Matalan with less than £200 million of debt and ultimately ensured it was best positioned for long-term success".
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