Matalan owner in line for payout

JOHN Hargreaves, founder of discount clothing and homeware chain Matalan, could reap a £250m dividend as part of a refinancing deal.

Hargreaves is reported to be looking at a £525m refinancing after the failure of the Lancashire-based company’s £1.5bn sale last year.

One of the most substantial for a British retail company, the payout would settle Matalan’s existing debts, estimated at £260m, with the remaining funds providing the windfall for Hargreaves. The financing plan includes about £300m of bank loans and a £225m bond issue.