Matalan revealed profits and sales slipped in its full year as it plans to raise cash to refinance its senior debt.
The value fashion and homewares retailer posted EBITDA down to £95.4m for the 53 weeks to March 1, from £100.4m the prior year.
Total sales in the period fell to £1.122bn from £1.125bn the previous year.
It closed the year with a cash position of £71.9m from £120.7m last year.
Since year-end in the nine weeks to May 3 Matalan recorded like-for-like sales up 0.2% year on year, while total sales jumped 5.5% to £181.7m.
Matalan said it recorded a “strong” performance in ladieswear, footwear and kidswear categories in the nine-week period. It said margins benefited after it improved its buying process and marked down less stock.
Matalan also plans to launch the issue of £342m in bonds due to mature in 2019 and £150m in bonds due to mature in 2020. The retailer aims to use the money to refinance its existing senior secured notes in full and pay costs, fees and expenses incurred in connection with the refinancing.
At the same time Matalan plans to amend and restate its existing revolving credit facility, which is expected to provide up to £50m and mature in early 2019.
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