MATALAN founder John Hargreaves has abandoned the proposed sale of his discount retail chain.
It is believed the Liverpool docker’s son who took the Skelmersdale-based business private in 2006 for £817m had hoped to attract offers for the 205-store chain in the region of £1.5bn.
A minimum opening offer of about £1.2bn was required.
But, despite an initial deadline for first bids last Friday being extended by a week, none of the four private equity groups believed to have shown an interest managed to match the valuation.
Matalan is competing in the tough discount retail sector with the likes of Primark, supermarkets and the New Look chain.
The collapse of Knowsley’s Ethel Austin chain into administration this Monday is an indication of the current prevailing conditions as retailers fight for market share amid the current downturn.
