The founder of Matalan, John Hargreaves, is all set to reward himself with a £250m special dividend after finishing up with the refinancing of the business.

Since February, Matalan has been in to continuous talks with the various bankers after failed attempts to sell the business to bidders who would meet a £1.2bn valuation criteria for obtaining it. The total worth of the company has reported to be £525m which comprises of loan, credit facility and senior notes.

The company commented that the earning will be used to facilitate the shareholders and to meet the current liabilities of the firm.

Hargreaves does not play any role in the operating activities of the company and his families, including him, are the only shareholders of the company.

Matalan's Chief Executive, Alistair McGeorge said, "The support shown from existing and new investors has been encouraging given the current state of the debt markets. We are pleased to have completed a refinancing which will underpin our growth for many years to come as we execute our growth strategy as an independent company".

Hargreaves commenced his retail career by distributing Marks & Spencer seconds.