The first quarter of its financial year wasn't a good one for Matalan with its revenue plummeting by over 70% as Covid-19 devastated its trading. It was loss-making, but it still has plenty of cash available.
UK retailers are urging strong government action as they deal with the Leicester garment factory scandal. The main company in the spotlight, Boohoo Group, and others are calling for a factory licensing system.
Steve Johnson is to take over as chairperson at value retailer Matalan and it has a new commercial chief too, with James Brown returning to the firm after having been commercial director of GM & Clothing at Sainsbury’s.
Matalan saw its revenue rising 2.3% in the year to the end of February, hitting £1.129 billion, with the company also saying that its market share grew and that its online growth was an impressive 24%.
The funding consists of a £25m revolving credit facility from the government’s Coronavirus Large Business Interruption Loan Scheme and £25m of new notes that will be purchased by a group of current bondholders.