Matalan has secured extensions to the maturities of its debt facilities from its investors, a vote of confidence in its long-term transformation strategy.
The fashion retailer’s super senior notes and priority notes have been given a two-year extension and are now due on April 1, 2029.
Its senior notes have been extended from January 28, 2028, to May 26, 2029.
The agreement follows the retailer’s strong financial performance, with pre-tax losses falling 18% to £55m in the 53 weeks to February 28, driven by stronger product margins and reduced shipping costs.
Adjusted EBITDA rose 24% to £69m, and sales edged up 0.2% to £987m.
Matalan is in the middle of its store refresh programme and reported that its upgraded stores outperform the wider estate by 12% growth.
The retailer’s chief financial officer, Dave Williams, said: “The continued support of our anchor investors reflects their confidence in Matalan and our strategy.
“The extension to our debt facilities provides us with further flexibility to continue to invest as we drive sustainable profitable growth and build on the positive momentum we have created.”
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