A controversial former proprietor of Comet, the defunct electricals chain, is among the many suitors vying to take management of Matalan, the value-based retailer.
Sky News understands that OpCapita, which is led by Henry Jackson, is predicted to desk an indicative proposal to purchase Matalan earlier than a bid deadline on Friday.
OpCapita attracted opprobrium a decade in the past when it briefly owned Comet, noticed it collapse after which recouped tens of tens of millions of kilos at the same time as taxpayers had been saddled with a £70m invoice.
Since then, it has expressed curiosity in shopping for British retailers together with Homebase and Majestic Wines, though its solitary present UK-based funding is The Football Pools.
Its curiosity in Matalan pits it towards rival funding companies together with Alteri, which is backed by Apollo Global Management, and John Hargreaves, Matalan’s founder, who is predicted to be backed by the dreaded activist investor Elliott Advisors.
Mike Ashley, the Frasers Group tycoon, can also be reported to be making ready a suggestion for Matalan.
Matalan, which was based by Mr Hargreaves in 1985, faces a deadline subsequent yr to refinance £350m in debt.
It additionally took a £60m mortgage from Bantry Bay – wherein Elliott owns a stake – because it sought to strengthen its stability sheet forward of what threatens to be a protracted stoop in shopper sentiment.
Based in Liverpool, Matalan employs greater than 11,000 individuals and trades from 230 UK shops.
It additionally operates an e-commerce platform and has greater than 50 abroad franchise shops.
The firm claims to have 11m prospects.
Like lots of its friends, the chain discovered its funds severely strained by the pandemic, prompting the Monaco-based Mr Hargreaves to offer substantial monetary assist.
In latest months, world inflationary pressures have impaired margins, whereas provide chain challenges have had an affect on inventory availability.
Matalan warned through the summer time that its “ability to successfully refinance our debts involves geopolitical, economic and market factors outside the direct control of the business”.
Mr Hargreaves lately stepped down after a short return as Matalan’s chairman to be able to take part within the bidding course of.
The Hargreaves household is being suggested by Lazard, whereas Teneo is dealing with the sale and Perella Weinberg Partners is advising the first-lien – or senior – lenders.
OpCapita declined to remark.
Source: information.sky.com”