Matalan is seeking around £60 million of investment after closing 232 stores due to the Coronavirus lockdown.

The value fashion retailer is considering options to secure short term funding, according to a statement to bondholders seen by the Mail on Sunday.

The company was forced to close 232 stores and had subsequently “bolstered its liquidity by drawing down fully against existing revolving credit facility having never before done so”. Staff have been furloughed, but Matalan continues to sell clothing online.

The statement continued that it has “strong financial discipline” and prior to the pandemic, operated at a “healthy level of liquidity”, so "multiple options" are being explored in terms of funding.

John Hargreaves acquired Matalan back from shareholders in 2006 for £817 million. In 2010, he paid himself a £250 million dividend after refinancing the firm with around £525 million of debt from bondholders.

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