Matalan lost £103M and its founder — lenders took the value fashion chain for the debt

Matalan was founded in 1985 by John Hargreaves in Preston, Lancashire, as a discount clothing retailer. It grew rapidly through a membership-only cash-and-carry model inspired by Sam's Club, reaching 50 stores by 1995 and £800M turnover by 1998, when it floated on the London Stock Exchange at a £1bn valuation. The Hargreaves family took it private again in 2006.

By 2022 the business was under severe strain. Supply chain cost inflation, heavy discounting to clear surplus inventory, the end of Covid-19 government support, and rising wages all squeezed margins. In the year to February 2023, Matalan reported a pre-tax loss of £103.4M, compared with a £7.6M loss the year before. Revenue had risen to £1.15bn but costs had risen faster.

In September 2022 Matalan launched a sales process. The founder John Hargreaves partnered with Elliott Advisors on a 50:50 joint bid, but lost to a consortium of existing lenders — Invesco, Man GLG, Tresidor and Napier Park — who took control in January 2023. The deal cut gross debt from £593M to £336M and provided up to £100M in new growth funding. Hargreaves, who had founded the company 38 years earlier, was out.

The new owners brought in Jo Whitfield as CEO in March 2023. Losses continued: £60M in the year to February 2024 and £67.2M in the year to February 2025, when revenue slipped to £985M and almost 200 jobs were cut. Whitfield left after 18 months in October 2024. As of 2025, Matalan operates 230 UK stores and 50 international franchises, with plans to open 10 new stores and upgrade 30 existing locations.