Matalan shareholders express concern

John Hargreaves, chairman and majority owner of Matalan, is to meet shareholders amid growing concern about his dominance of the company.

Disquiet about a management vacuum at Matalan has increased since the announcement last week that John King, chief executive, is to leave at the end of the year. Merrill Lynch, the company's broker, has contacted leading shareholders and offered them a meeting with Hargreaves and Geoff Brady, the deputy chairman of Matalan and senior non-executive.Hargreaves and Brady are keen to explain to shareholders the circumstances surrounding King's departure. He will receive a £420,000 payoff when he leaves, a payment the non-executives argue is needed to ensure that King stays for the full year to allow a smooth handover.