Matalan understood to have entered Lloyd’s Banking Group’s special measures unit

It has been reported by The Times that Matalan has been placed into Lloyds Banking Group’s special measures unit which helps support troubled businesses.

It is thought that the move was at Matalan’s request to secure the relaxation of some of the covenants on its £50 million debt facility.

Although it is understood that moving into the special measures unit doesn’t necessarily mean that the company is in trouble, it is likely that the move will do little to reduce speculation about the health of the business.

In January 2016 Matalan warned that its EBIDTA figure for the year ending February 2016 would be less than originally forecast, citing challenging December trading conditions and mild weather for the revision from £60m-£65m to £54m-£56m.

Matalan has not commented on the report.

Source Insight DIY