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Struggling Carpetright to close stores in rescue deal?

by LLB Reporter
21st Mar 18 8:47 am

Many jobs at risk

To help secure its financial position, Carpetright is “exploring” a rescue plan which would allow it to speed up the closure of underperforming stores.

The struggling retailer has also secured new funding from a key investor, according to Sky News.

Carpetright chief executive Wilf Walsh said it would be “business as usual” for the flooring firm’s stores during Easter and it would remain in “close contact” with staff over its restructuring plans: “I am pleased that we have secured this additional support from one of our major shareholders as we continue to explore the feasibility of a CVA and a conditional equity issue.

“These further cash resources will enable us to make the necessary decisions free from short-term funding pressure.

“The aggressive store opening strategy pursued by the company’s previous leadership has left Carpetright burdened with an oversized property estate consisting of too many poorly located stores on rents which are simply unsustainable.”

Carpetright has 400 stores across the country.

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