Matalan is reportedly considering a refinancing following its axed sale.

The privately-owned retailer, which shelved its £1.5bn sale earlier this month, is thought to have appointed Goldman Sachs to advise on the refinancing, according to the Financial Times.

The bank worked on the abandoned sale of the business alongside Matalan’s long-standing advisor PwC.

John Hargreaves, Matalan founder and controlling shareholder, took the business private in 2006 for £817m. The chain cut its debt back from the £408m of borrowings it took on at the time to about £200m today. Some of the backing came from collapsed Icelandic bank Kaupthing. The refinancing is reportedly earmarked to replace Matalan’s existing debt, including Kaupthing’s funding, with new facilities provided by Goldman.

Matalan aborted the sale process of the business on February 10 when offers fell short of the £1.5bn price tag attached to the business.

An IPO is not thought to be an option which Hargreaves would consider given the turbulent market for flotations and Hargreaves’ clashes with investors when he took the business private.