Matalan, the discount clothing retailer, has agreed a £817m takeover offer from its original founder, John Hargreaves. Hargreaves, who founded the company in 1985, already controlled 53 per cent of the company along with his family, and will now buy the remainder for 200p-per-share. Hargreaves has arranged a £408m debt facility with Kaupthing to finance the takeover. He commented: "The company's recent difficulties have led me to believe that Matalan would be better off back in the private ownership of the Hargreaves family. This will enable us to make the necessary changes to the business and restore the original values and ethos that enabled the company to grow."