A financial investment group is reportedly in talks to takeover British homeware retailer Matalan, Sky News reported.

The news agency noted that funds including Invesco and Man GLG could finalise a deal within the next two weeks.

As per the syndicate’s proposal, these funds are expected to make an investment of close to £100m in the homeware retailer to ensure its short-term future.

People familiar with the development told that the lenders are reportedly in talks with Matalan’s interim CEO Nigel Oddy with regard to the possibility of permanent role if the deal is successful.

Last month, Matalan is said to have received bids from several parties.

Matalan was quoted by Sky News as saying: “The company is currently assessing all the bids and constructive discussions are continuing with interested parties and their advisers.

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“In addition, the ad hoc group of existing First Lien Noteholders represented by Invesco, Man GLG, Napier Park and Tresidor, which now holds over 70% of the First Lien Secured Notes, has reconfirmed its commitment to a recapitalisation if necessary.

“All transactions under consideration provide for a material reduction of Matalan’s debt including the First Lien Secured debt, an extended debt maturity profile and any new funding that may be required.”

Matalan was established in 1985. As of April 2019, it operates more than 230 stores in the UK, and 49 International franchise stores.

In May 2020, Matalan requested its existing lenders including Barclays and Lloyds to infuse £50m of government-backed funding to maintain liquidity. The two lenders agreed to invest under the coronavirus business interruption loan scheme.