Clothing and homeware retailer Matalan has received £25 million in funding to accelerate its multi-year business transformation plan.

The company said the money will be used to invest in its supply chain, store upgrades and new store openings.

Additionally, the funding will be used to launch a new app which Matalan said will drive its e-commerce channel and loyalty programme.

Matalan launched its transformation plan last year, which included a £35m investment to lower the prices of more than 700 products, the extension of its core clothing range to size 22 across all womenswear, as well as the launch of new third-party brands on its online store.

“We are delighted to have secured this additional funding from our anchor investors,” said Karl-Heinz Holland, executive chair of Matalan. “The funds will enable us to build on the progress we have already made in delivering our strategy, and accelerate investment across the business – from our stores through to our supply chain.

“We look forward to driving Matalan’s transformation forward as we continue on our journey to deliver sustainable, profitable growth.”

The funding comes from anchor investors Invesco, Tresidor, Man Group and Napier Park.

The news follows the appointment of Sarah Welsh to the role of chief product and commercial officer last month.

She joined the firm from N Brown where she had worked for five years as chief executive of retail.

Prior to this, Walsh spend 17years working at clothing retailer Oasis in a variety of roles.

Matalan currently operates over 270 UK and international stores and serves around 11 million shoppers each year through these stores and its online channels.

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