Matalan has completed the £25m sale and leaseback of its head office in Knowsley, Liverpool.
The property was sold by Jonmar Limited – a company in the Matalan group which owned the head office – to a company owned by Matalan’s founder John Hargreaves. The building is Jonmar Limited’s sole asset.
According to Matalan, the sale is part of financing plans set out by the company in June, following “significant” disruption to the business driven by the pandemic.
The £25m disposal proceeds will be used to repay Matalan’s debt on a revolving credit facility provided by the Coronavirus large business interruption loan. It will also pay part of the pre-existing £50m revolving bank credit facility.
Matalan furloughed 11,000 employees during the pandemic with support from the government’s furlough scheme subsidy.
The out of town fashion and homeware retailer has 231 stores across the UK.
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