Wednesday, 21 March 2018

Carpetright plan to close underperforming stores in rescue deal



Carpetright is exploring a rescue plan which would allow it to speed up the closure of underperforming stores.

 
The beleaguered retailer, which employs 2,700 people in the UK, did not reveal the number of locations facing the axe though it has been suggested that around 100 are likely to be affected.
 
 
Carpetright announced the strategy as it confirmed that it had secured £12.5m in funding from a major investor - confirming a report hours earlier on Sky News.


Shares - down around 80% over the past 12 months - rose 1% on the news.


It was the latest bleak update from the high street on a day which also saw a profit warning from menswear business Moss Bros and Kingfisher, the owner of B&Q, reporting deteriorating sales at the DIY chain.


Meanwhile, Mothercare said that it was making progress in talks with lenders as it seeks new funding and that it had agreed to push back a deadline later this week for ensuring its finances were in order.


Carpetright, which trades from 409 shops across the country, warned earlier this month that it was likely to report a loss for the year to 28 April and was looking at a range of options to beef up its balance sheet.


On Wednesday, the retailer said it was looking into a Company Voluntary Arrangement (CVA) with the aim of "rationalising the company's property portfolio in order to improve the long-term prospects of the business".
Chief executive Wilf Walsh blamed previous bosses of the company for pursuing an "aggressive store opening strategy".




SKY        News.