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Carpetright to close 92 stores in UK

RBR Staff Writer Published 12 April 2018

UK flooring retailer Carpetright is planning to close 92 stores, resulting in job losses of at least 300.

The move is part of the company’s restructure programme, which aims to raise about £60m.

The company, which has been facing difficult trading conditions, said that it continues to expect a small underlying pretax loss, for the financial year ending this April. 

Carpetright, which has more than 400 stores, is said to have identified 205 underperforming stores in the UK, which are on unfavourable lease terms or are not expected to be of strategic importance.

Of the total stores, 92 sites have been identified for closure in the short term under the company voluntary arrangement (CVA) Proposal, with the balance of 113 sites being subject to a reduction in rental costs and revised lease terms.

Carpetright has been in talks with its lenders to avoid breach of terms of its bank loans.

Carpetright CEO Wilf Walsh said: "These tough but necessary actions will enable us to address the burden of a legacy UK property estate consisting of too many poorly located stores on unsustainable rents and are essential if we are to restore our profitability and deliver a successful turnaround.

“Completion of the CVA and equity financing will enable us to establish an appropriately-sized estate of modernised stores, on economic rents, complemented with a compelling online offer, enabling Carpetright to address the competitive threat from a position of strength.”

Image: Carpetright distribution centre. Photo: Courtesy of Carpetright plc.