Matalan has continued to face significant losses as its sales dropped below £1bn and it cut nearly 200 jobs.
The Liverpool-based retailer recorded a pre-tax loss of £67.2m for the 12 months to 22 February, 2025, following on from a £60m pre-tax loss in the previous year, as reported by .
Newly filed accounts reveal that Matalan's revenue decreased from £1bn to £985m during this period, while the average number of employees fell from 10,461 to 10,277.
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Matalan attributed the decline in sales to subdued consumer spending which "driving an increase in market competition".
The company also noted that the downturn was "further exacerbated" by stock availability issues, partly due to disruptions caused by the Red Sea crisis and a strategic decision to prioritise profitability over revenue growth.
Despite the challenges, Matalan highlighted an improvement in its gross margin by three per cent to £510m and a six per cent increase in EBITDA (earnings before interest, taxes, depreciation and amortisation) to £56m.
In October 2024, Matalan announced the departure of chief executive Jo Whitfield after an 18-month tenure, with no successor yet appointed.
These results mark the second full-year report since Matalan was acquired by its lenders in January 2023, a move that concluded founder John Hargreaves' involvement with the company.
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The takeover was finalised by a consortium including Invesco, Man GLG, Napier Park, and Tresidor, following Matalan initiating a sales process in September 2022.
The arrangement resulted in lenders slashing the group's gross debt by £257 million to £336 million, and they've also agreed to provide up to £100 million in new growth funding as part of the deal.
‘We are confident in the strength of the Matalan brand’
Executive Chair of Matalan, Karl-Heinz Holland commented: "In the last year our focus has been on further driving the transformation of Matalan against a challenging consumer and wider economic backdrop."
Holland remarked on post-year-end developments, stating: "The additional £25m of funding secured from our core investors post-year end has now enabled us to start to accelerate our strategic plan."
He reported on profitability and expansion plans, saying: "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."
Reflecting on customer service and staff efforts, he added: "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."
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Acknowledging the current financial landscape, he said: "While we started the new financial year with positive momentum, we continue to operate in an increasingly competitive market and uncertain macroeconomic conditions."
Looking ahead, Holland concluded: "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."