The founder of the fashion and homewares business is understood to have approached existing lenders Barclays and Lloyds to pump a combined £50m of government-backed funding into the retailer to prevent it running out of cash.

Fashion businesses have been hit particularly hard by the coronavirus lockdown, with retailers including Cath Kidston, Debenhams and Warehouse all entering administration over the last few weeks.

According to The Times, Hargreaves is reluctant to dip into his personal funds to help Matalan through the coronavirus pandemic. A Monaco-based tax exile, Hargreaves is understood to have amassed a £600m personal fortune.