Matalan - comment

Papers this morning report that John Hargreaves has been ordered by a London court to pay capital gains tax on his sale of the company in 2000. Prior to his sale of Matalan then, the founder had moved to Monaco to avoid the tax, but by 2007 HMRC had already been looking for £84m. We understand the bill today could amount to £135m, which would seem at least inconvenient in the current refinancing. However, Mr. Hargreaves is apparently able to appeal and considering the amount under debate this could be the best option. Alternatively, perhaps there is a way for the Hargreaves to realise a capital loss on the shares and net the amounts. We stick to our positions.