Matalan founder John Hargreaves is poised to lose control of the clothing giant he set up almost 40 years ago.
Invesco, Man GLG, Napier Park and Tresidor will seize the chain tomorrow.
They have agreed to wipe £250million off the company’s debt and inject up to £100 million in funds, securing its future.
Struggle: Matalan has 230 stores in the UK and still attracts more than £1billion sales a year
The weight of debt had already forced the former market stall trader to step down as chairman last year.
He has since battled to maintain his ownership of the business.
It has 230 stores in the UK and still attracts more than £1billion sales a year despite fierce competition from Primark, Asda and Tesco.
The Hargreaves family took a £250million dividend in 2010 after saddling the business with a £500million loan. By 2015, there were already warnings signs it had taken on too much debt.
Monaco-based mogul Hargreaves opened his first Matalan in 1985. He had a stint on the stock market before taking it private again in 2006.
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