SKELMERSDALE out-of- town discount chain Matalan is believed to have pledged funding for Iceland chief executive Malcolm Walker should he decide to bid for control of the Deeside store chain he founded in 1970.
He and fellow directors currently own 23% of the group, with the remainder held by Icelandic banks Landsbanki and Glitnir.
He is keen to take control of the group and weekend reports claim he has held talks with Matalan owner, and son of a Liverpool docker, John Hargreaves, as well as furniture group DFS founder Lord Kirkham over supporting a potential bid.
It is understood they have agreed to offer equity backing if Mr Walker does bid, although this remains uncertain as he must match the highest bid in any auction and Landsbanki has demanded offers of at least £1.3bn.
However, Mr Walker is understood to have debt financing with a syndicate of banks and support from Canadian fund manager Alberta Investment Management Corporation.
