Home / Knowledge / News / Retail / Matalan close to securing £50-mn funding from stakeholders

Matalan close to securing £50-mn funding from stakeholders

09
Jun '20
Pic: Matalan
Pic: Matalan
UK fashion and homewares retailer Matalan recently confirmed it is a step closer to securing £50 million in additional funding from existing stakeholders to tackle the impact of COVID-19. The funding comprises a £25-million revolving credit facility under a government scheme from two banks and £25 million from existing bondholders via a newly issued note.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) funding from the two banks will need to be paid back by December 31 this year, according to British media reports.

Banks will lend to Matalan under CLBLIS only if they will be among the first in line for repayment should the company heads towards bankruptcy.

In a statement, a spokesperson for the company said: “Matalan announced that it was assessing a number of alternative options to raise additional funding. This funding is required to enable Matalan to manage the short-to-medium-term cash flow impacts following the temporary loss of store revenue arising solely from the direct impacts of COVID-19.”

After being forced to shut its 232 stores in the United Kingdom, Matalan has deferred rent payments and offered to pay suppliers just 70 per cent of bills for April-July, with some landlords now launching legal action to reclaim money withheld by the business.

Matalan has since been permitted to re-open 15 stores across the country after the government relaxed non-essential retail rules to allow homewares stores to open from May 18.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 15th Jun 2021

Australia, UK agree on broad terms of trade deal

Prime Ministers Scott Morrison and Boris Johnson have agreed in...

Pic: Shutterstock

Textiles | On 15th Jun 2021

Germany passes law on corporate due diligence in rights, environment

The German parliament passed a law last week that warrants large and...

Pic: Azamat Imanaliev / Shutterstock.com

Apparel/Garments | On 15th Jun 2021

Prime Content| Revenue, profits of major garment firms in China rise in Jan-April

Revenue, profits, output, online retail sales and exports of major...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

Fashion tech has to be lean and very productive

Textile Industry, Head honchos

Textile Industry
Head honchos

We are staring at livelihood crisis for weavers

Ritu Oberoi,

Ritu Oberoi

Established in 2018, Forsarees is a socially driven business enterprise,...

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Nantas Montonati,

Nantas Montonati

The Riri Group is a one-stop supplier of metal accessories for the luxury...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search