News World News

Monday 23 July 2018

Carpetright shares slump on store closure reports

Carpetright has 409 shops across the UK.

A Carpetright store, as the shares fall on rescue plan reports (PA)
A Carpetright store, as the shares fall on rescue plan reports (PA)

By Ben Woods, Press Association Chief City Correspondent

Shares in Carpetright have plunged on reports the struggling retailer may close stores and axe jobs as it pieces together a rescue plan.

The Press Association understands the group could go down the route of a company voluntary arrangement, which would allow to it to shut loss-making stores and secure deep discounts on rental costs.

Carpetright, which has 409 UK shops, said it was exploring “a range of options” to reboot the business and a final decision had not been made.

The prospect of a CVA – first reported by the Sunday Telegraph – sent shares tumbling more than 10% in morning trading on the London Stock Exchange.

Such a move would see Carpetright join the likes of fashion retailer New Look and restaurant chains Byron, Prezzo and Jamie’s Italian, which have all embarked on CVAs since the start of the year.

It was also heap further misery on Britain’s battered high street following the collapse of Toys R Us and Maplin, which has affected 5,000 jobs.

Carpetright revealed earlier this month that it was set to swing to a full-year loss and had started talks with its lenders to ensure it does not breach the terms of its bank loans.

It also confronted by a share price crash in January when it warned over profits and said like-for-like UK sales had fallen 3.6% during the crucial Christmas trading period.

A spokesman for Carpetright said: “As announced on March 1 we are examining a range of options to accelerate the turnaround of the business and strengthen its balance sheet.

“This process is ongoing and the group will update the market on these initiatives as required.”

Press Association

Today's news headlines, directly to your inbox every morning.

Editors Choice

Also in World News