John Hargreaves bags a £250 million dividend
John Hargreaves, the founder of the Matalan operation, has today announced a £525 million refinancing of the operation which will see him receive a special dividend of £250 million. The remaining £275 million will be reinvested into the company after a recent offer for sale was pulled at the last minute when potential suitors stepped back due to concerns regarding the economy and the short to medium term outlook.
Hargreaves is seen by many as the leader of the value for money retail sector with many suggesting that the likes of Primark and New Look simply followed in his footsteps. When you consider it was only 1985 when John Hargreaves opened his first Matalan store he has since floated the business on the stock market and bought it back and also announced news of his £250 million dividend today. He has to be one of the biggest success stories in the retail sector of recent times despite the fact that very often he has ignored the advice of so called experts in the retail field.
The £250 million dividend is all the more spectacular set against the backdrop of a difficult retail market in the UK although for many years John Hargreaves has made his money by doing his own thing.
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