Matalan has received bids from five private equity groups, according to reports.
Value chain Matalan, which may be sold for as much as £1.5bn, has attracted interest from BC Partners, Blackstone, TPG, Warburg Pincus and Advent, according to the Financial Times.
A sale is unlikely to go through until the new year, after Matalan has reported on its Christmas trading performance. It is likely some of the retailer’s senior management would leave after a sale.
Matalan said: “Matalan confirms it is in discussions with a number of interested parties who have approached them with a possible interest in acquiring the business.Discussions are ongoing and no further announcement is expected until the new year.”
If Matalan attracts the proposed £1.5bn asking price, it would be valued at more than 10 times EBITDA of £145m in the year to February 28. The hefty price being demanded is understood to have dissuaded some potential bidders from submitting offers.
Bidder Advent already owns value variety store chain Poundland and its bid would be led by former Boots chief executive Richard Baker.