Matalan has brought in a former New Look chief as it announces the start of a strategic sales process.
Nigel Oddy will join the fashion retailer as interim CEO from the start of next month, after leaving the high street chain in June.
Oddy will help to deliver a growth strategy and reposition the brand as it grapples with competition from online retailers and a slowdown in consumer spending.
Matalan has kicked off a strategic sales process in order to cut the group’s debt and strengthen its financial position.
Chairman and founder of the brand John Hargreaves will step down as chair, after rejoining the business in July, in order to participate in the sales process as a bidder.
Hargreaves, who founded the retaler in 1985, said Matalan was part of his DNA and pledged to be “instrumental in positioning the business for long-term success.”
“I have followed Matalan closely through my career and have admired its excellent value and quality focused credentials,” Oddy said.
The retail chief said he had”noted its particular momentum” with “driving ahead with its mission to offer an excellent omnichannel experience for the millions of families it serves up and down the nation, and beyond.”
The company announced it had secured an agreement with over a majority of its First Lien Secured noteholders on the key terms of a “comprehensive recapitalisation.”
A group of noteholders has offered to provide £200m of senior secured, stapled financing to interested parties, as well as pledging to support Matalan’s intent to extend the maturity of First Lien Secured Notes of £350m maturing in January 2023 by six months.
The company had been approaching a January deadline for refinancing £350m in debt, with an additional £130m instrument scheduled for repayment the year after.
In financial results for the 13 weeks to the end of August, the retailer posted recovering sales of £286.4m, versus £264.7m the previous year.
The Liverpool-based retailer employs 11,000 people across 230 UK stores.