Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Matalan founder to pay himself £250m dividend

Matalan founder John Hargreaves is set to pay himself a £250m dividend as part of refinancing plans at the value chain.

Hargreaves is reportedly in talks with banks and investors about a £525m refinancing of the 200-store chain that would repay Matalan’s debt, which is thought to be £260m. According to the Sunday Times, the rest of the refinancing package would be used as a dividend for Hargreaves. The total financing packet is understood to include £300m of bank debt and a £225m bond issue.

The dividend would be one of the biggest ever for a British retail company but falls short of the £1.2bn Arcadia-boss Sir Philip Green paid himself in 2005.

The refinancing of Matalan follows an unsuccessful attempt by Hargreaves to sell the Lancashire-based business earlier this year. Potential investors balked at the £1.5bn asking price.

Hargreaves began his career selling Marks & Spencer seconds from a market stall and opened the first Matalan store in 1985 in Preston after being inspired by American out-of-town discount stores.

The business floated on the London Stock Exchange in 1998 and Hargreaves bought it back in 2006.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.