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Carpetright to close 92 stores in restructuring plan

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    Carpetright storeImage copyright PA

    Retailer Carpetright says it is closing 92 stores and cutting 300 jobs as part of a restructuring plan.

    It recently said it had started talks with lenders to ensure it does not breach the terms of its bank loans.

    The chain is planning a company voluntary arrangement (CVA), which will allow to it to shut the worst-performing stores and ask for rent concessions on another 113 sites.

    It is the latest in a long list of businesses to run into trouble.

    There have been similar recent arrangements at fashion retailer New Look, restaurant chains Jamie’s Italian and Prezzo, and burger chain Byron.

    Carpetright, which has more than 400 UK shops, has been struggling with underperforming outlets which have made its rental costs harder to shoulder.

    The company also said it would raise £60m through a placing of new shares, which would raise money to cut debt and pay for the restructuring plan.

    Carpetright has issued a string of profit warnings in recent months.

    Retailers are being pummelled by a range of problems, including a shift from High Street shopping to online, as well as consumers having to tighten their belts with inflation outstripping wage growth.

    The CVA needs approval from creditors, which it will seek at a meeting on 26 April, and it will then hold a meeting with shareholders to ask for their approval on 30 April.

    View the original article: http://www.bbc.co.uk/news/business-43736535

    http://www.bbc.co.uk/news/business-43736535

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