Matalan: Huge losses continue as almost 200 jobs lost
Huge losses have continued at Matalan as its sales dipped below £1bn and it shed almost 200 jobs.
The Liverpool-headquartered retailer has reported a pre-tax loss of £67.2m for the 12 months to 22 February, 2025.
The total comes after Matalan also posted a pre-tax loss of £60m in its prior year.
New accounts also show its revenue fell from £1bn to £985m over the same period while the average number of people employed by Matalan reduced from 10,461 to 10,277.
Matalan said the fall in its sales was a direct result of subdued consumer spending “driving an increase in market competition”.
It added that the decline was “further exacerbated” by stock availability issues “due in part to the disruption to trade caused by the Red Sea crisis as well as a conscious decision of the business to focus on profitability over top-line revenue performance”.
The retailer pointed to its gross margin improving by three per cent to £510m and a six per cent rise in its EBITDA (earnings before interest, taxes, depreciation and amortisation) to £56m.
In October 2024, Matalan’s chief executive Jo Whitfield stepped down after 18 months in the role. A successor has not been named.
The full-year results are the second since Matalan was taken over by its lenders in January 2023 in a move which ended the involvement of founder John Hargreaves.
The group, led by Invesco, Man GLG, Napier Park and Tresidor, sealed the deal after Matalan launched a sales process in September 2022.
The move saw the lenders cut the group’s gross debt by £257m to £336m and agreed up to £100m in new growth funding as part of the deal.
‘We are confident in the strength of the Matalan brand’
Karl-Heinz Holland, executive chair of Matalan, said: “In the last year our focus has been on further driving the transformation of Matalan against a challenging consumer and wider economic backdrop.
“The additional £25m of funding secured from our core investors post-year end has now enabled us to start to accelerate our strategic plan.
“With a clear focus on maintaining profitability, we have delivered EBITDA growth.
“Our store investment plan is delivering results even better than we expected, and we’re making good headway on our plan to open 10 new stores and upgrade 30 existing locations in FY26.
“Our customers are central to everything we do and our renewed focus on ever sharper quality and value reflects this, and I want to thank all our colleagues who have worked so hard to ensure we are delivering every day.
“While we started the new financial year with positive momentum, we continue to operate in an increasingly competitive market and uncertain macroeconomic conditions.
“Against this backdrop, we remain mindful of the tough operating environment and know there is much more to do to complete our transformation.
“At the same time, we are confident in the strength of the Matalan brand and the opportunities ahead, and believe the business is well positioned to continue to transform and grow its profitability.”