Matalan says trading is 'tough'

Matalan may be taken private by its founder John Hargreaves

Clothing retailer Matalan has said trading remains tough despite a boost to sales from the World Cup.

Like-for-like sales, which ignore the impact of new store openings, fell 0.1% in the nine weeks to 1 July.

However, it said that sales had picked up in the past few weeks thanks to sales of World Cup branded items, and added that profit margins were higher.

Matalan confirmed on Friday that its founder John Hargreaves is working on a possible plan to take it private.

The firm is holding its annual general meeting on Wednesday.

Like-for-like sales were down 1.1% in the 18 weeks to July, Matalan said.

Back in May it reported a fall in profits after what it described as a "difficult year". Pre-tax profits for the year to 25 February were £36.3m ($67m) compared with £80.5m a year earlier.