Shares tumbled 24 per cent in early trading
Shares in Carpetright have plunged 24 per cent in early trading as it has announced plans to close 92 stores and slash 300 jobs to tackle its “legacy property issues”.
It said it hopes to relocate affected staff where possible.
The group, which employs nearly 2,700 staff overall, has identified 92 sites of 205 underperforming ones for closure, with 113 being subject to a reduction in rental costs and revised lease terms.
It has also confirmed an investor cash-call to raise around £60m through a rights issue to put the firm on a firmer financial footing.
Wilf Walsh, chief executive of Carpetright, 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.
“We will remain in close contact with all colleagues to keep them fully informed as we move through this process.”