One of Britain’s biggest retailers has gone into its bank’s special measures division for struggling businesses as fears grow over the deterioration in its trading.
The Times understands that Matalan has been placed in Lloyds Banking Group’s business support unit, which was set up to help troubled companies.
The move comes a few years after Matalan issued nearly £500 million in bonds to help to refinance its operations and to fund a bumper £250 million dividend to John Hargreaves, its founder. The payout remains one of the biggest on record for a British retail company.
It is understood that the heavily indebted fashion and homewares retailer approached Lloyds late last year and asked to be placed in the bank’s support unit. The request was part