Matalan founder set for £250m dividend

THE founder of discount retailer Matalan is in line for a £250 million dividend as part of a plan to refinance the firm.

John Hargreaves, who took the chain private in 2006, is in talks with banks and other investors about a 525m package. The firm is understood to be seeking funding partly to pay down debts estimated at 260m, with the rest of the payout destined for Mr Hargreaves.

It is thought the bumper dividend would be among the biggest for a British retail company if it went ahead, although it is dwarfed by the 1.2 billion pocketed by Topshop owner Sir Philip Green in 2005. Reports of the refinancing plans follow Mr Hargreaves' aborted attempt to sell the 200-store chain earlier this year after would-be buyers balked at the 1.5bn asking price.

No-one from Matalan was available to comment yesterday.