Matalan has secured a commitment for a further £25m in additional funding from its core investor group to help power its ongoing turnaround.

The fashion retailer said that the facility, if drawn, will be used to build on the “significant strategic progress” it has delivered over the past year.

The company, which received £25m last year, has increased its investment in product, stores, and digital offering.

It plans to upgrade 40 more stores during the first half of 2026 after reporting its refreshed locations that were outperforming the wider estate by 12%.

The retailer added that the additional funds from its investors – Invesco, Tresidor, Man Group, and Napier Park – will support increased investment in seasonal products to support key trading periods.

Matalan chief executive Henrik Nordvall, who joined the business last month, said: “This commitment to providing additional funding reflects the confidence of our anchor investors in both the business and our strategy, as well as the strong strategic progress we have made and the growing momentum in the business. 

“We’re investing for growth and seeking to increase the pace of that investment in the areas we are seeing the strongest returns, including our stores and product offer, as we continue to strengthen our proposition around great style, quality, and value and grow our market position.”

The retailer reported at the start of the year that its EBITDA rose 38% to £27m in the 13 weeks to November 28, driven by improved margins and a 2% uptick in like-for-like sales over the period.

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