Matalan founder to receive £250 million dividend
08 March 2010 09:10
Matalan founder and controlling stakeholder John Hargreaves is in-line for a £250 million dividend as part of his plans to re-negotiate the company's debts, according to weekend press reports.
According to the Sunday Times, Mr Hargreaves is in talks with banks and other investors concerning a £525 million refinancing that would partly be used to repay Matalan's debt of approximately £260 million, with the rest of the payout to go to Mr Hargreaves. It is thought the bumper dividend would be among the biggest for a British retail company if it went ahead, although it is dwarfed by the £1.2 billion pocketed by Topshop owner Sir Philip Green in 2005.
The reports follow Mr Hargreaves' attempts to sell the chain, which fell flat earlier this year as no bidders were willing to pay the £1.5 billion price tag.
Mr Hargreaves, who opened the first Matalan store in Preston in 1985, took the retailer private in an £827 million deal backed by £410 million of debt three years ago.
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