Matalan has secured £25 million of funding from its core investor group to support its ongoing business transformation and accelerate its store upgrade programme.

Invesco, Tresidor, Man Group and Napier Park are the main investors in the fashion and homewares retailer.

Matalan said the additional funding will be used to build on the “significant” progress the company has made over the past year, including increased investment in its product range, stores and digital offering.

The retailer is in the process of refreshing its stores, with upgraded sites said to be outperforming the wider estate by 12 per cent.

The latest capital injection will be used to speed up the refresh, with 40 store upgrades planned for the first half of the year.

In June last year, Matalan announced plans to invest £25 million in opening new stores, refreshing existing locations and launching a new app to underpin its loyalty proposition.

Matalan added that the new funds will also support increased investment in seasonal product to underpin key trading periods.

“This commitment to providing additional funding reflects the confidence of our anchor investors in both the business and our strategy, as well as the strong strategic progress we have made and the growing momentum in the business,” said Henrik Nordvall, chief executive of Matalan.

“We’re investing for growth and seeking to increase the pace of that investment in the areas we are seeing the strongest returns, including our stores and product offer, as we continue to strengthen our proposition around great style, quality and value and grow our market position.”

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