Matalan boss lands payout for securing new debt package
Chief executive Jason Hargreaves is the son of Matalan founder John Hargreaves.
Matalan boss Jason Hargreaves took home £1.5 million last year after securing a successful refinancing package for the business.
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Accounts filed at Companies House show that Matalan’s highest-paid director, thought to be Mr Hargreaves, earned a £900,000 bonus on top of a basic pay of £600,000.
It came as pre-tax profit for the year to February 24 more than doubled to £20 million, while total revenue rose 2.5%, up from £1.04 billion to £1.06 billion.
It is understood that the reward was tied to Matalan’s results, which were the best for seven years, and the refinancing of the retailer’s loan notes, which were maturing in 2019 and 2020.
Matalan replaced the notes with £330 million of secured notes due in 2023, and a second tranche of £150 million due in 2024.
When the company released its full-year results, Mr Hargreaves warned the conditions in the retail market were likely to remain challenging “for the foreseeable future”.
He said the chain had been hit by pressures from inflation and the decline in the value of sterling.
Mr Hargreaves is the son of John Hargreaves, who founded Matalan in 1985.
The Hargreaves family controls various retail businesses in the UK, including Nicole Farhi, Wolsey and Fenn Wright Mason.
The bumper payout for Mr Hargreaves comes after around 700 Matalan workers threatened to strike over pay in July last year.
A row broke out after the GMB union accused the business of failing to give adequate rewards for warehouse staff.
However, Matalan narrowly avoided strike action after the workers at its Knowsley warehouse voted to accept a pay deal.