The value fashion retailer, Founded by John Hargreaves, is considering options to secure “short term funding” after stating that it has not faced “such difficult and unpredictable times” in its 35 years of trading.
The company circulated a statement to its bondholders on Friday. It said it had been forced to close 232 stores and had subsequently “bolstered its liquidity by drawing down fully against existing revolving credit facility having never before done so”.
The retailer has furloughed staff but continues to sell clothing online. It added that it has “strong financial discipline” and prior to the pandemic, it had a “healthy level of liquidity”.
However, the outbreak resulted in a considered review of the need for further measures following the store closures. Matalan also confirmed it is “exploring multiple options” in regards to funding. It has been seeking £60 million for the past week.
In recent weeks, some of the UK’s major retailers have seen their businesses being affected by the pandemic.
