Matalan has reached an agreement to extend the deadline to pay off its £350m debt.
The Liverpool-headquartered discount clothes retailer has announced that its debt payments have been put back by several months.
The move buys the company, which is currently up for sale, more time to find the necessary cash.
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Matalan has confirmed the deadline to refinance its £350m of debt has been moved back from January to July 2023.
In a statement, the company said: "This is an important milestone in Matalan’s comprehensive recapitalisation plan and provides increased certainty to our colleagues, suppliers and partners.
"Having obtained a level of noteholder support which now exceeds the 90% threshold required to extend maturities under the terms of the bond indenture, the company will launch a consent solicitation through the clearing systems today, with a deadline of 5pm on Tuesday 25 October 2022."
Last week BusinessLive reported that the owner of Waterstones was in talks with the founder of Matalan about backing his bid to take full control of the fashion retailer.
Matalan was founded by Mr Hargreaves in 1985 and put itself up for sale towards the end of last month.
Mr Hargreaves stepped down as chairman to make a a bid for the retail chain, having returned as chairman in July.
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