Matalan CEO confirms bid speculation

Lancashire-based retailer Matalan has confirmed speculation that it was mulling over offers for the business.

Budget fashion chain Matalan is said to be a £1.5 billion target for a number private equity firms.

However, Matalan's CEO Alistair McGeorge informed that the clothing chain had received many unsolicited offers, which were being considered by PricewaterhouseCoopers.

Speaking on the topic, Alistair McGeorge added, "PwC will have a look at what they [potential purchasers] have got to say, but if we decide there is going to be a formal [sales] process, it is going to go on well after Christmas."

Matalan reported an operating profit of £102 million for the year ended February 28 as compared with £89.4 million last year.

Retailer's like-for-like sales jumped 8.2 per cent in the period to June.

A sale would mean a windfall for Matalan's founder John Hargreaves, who took the firm private three years ago for £827 million supported by £410 million of debt.