The family of John Hargreaves, who founded the Matalan chain of stores in 1985, has reacted with disappointment to today’s takeover of the brand by its lenders, which effectively removes the founder and his family from the business.
Hargreaves and his family have underlined that they do not believe the takeover is in the best interest of the company and its key stakeholders – its employees, customers, and suppliers – and emphasised that over nearly 40 years the founder and his family have acted in the best interests of the company and has continued to provide real, stable solutions for its future.
The family have also noted that their own attempts to buyout the business would have left it owing less than the deal agreed today, and claimed that lenders seem to have been seeking takeover rather than a refinance citing “multiple, very reasonable offers” which the 1L lenders have rebuffed.
The Hargreaves Family Private Office added in a statement issued to Prolific North through a spokesman: “John Hargreaves and the Hargreaves family are disappointed by today’s announcement by Matalan.
From the day he founded the company in 1985 through to the current sales process, John’s focus and commitment has been to act in the best interests of the company, its employees, suppliers and business partners.
The Hargreaves family and Elliott bid would have left Matalan with less than £200m of debt and ultimately ensured it was best positioned for long-term success. John Hargreaves does not believe that the deal announced today with the first lien investors is an optimal outcome for Matalan and its key stakeholders. In particular, he is concerned that it fails to address the needs of the business to adequately deleverage its balance sheet and secure an appropriate long-term owner for the company, both of which were central to the Hargreaves family led bid.”
