Carpetright could cut stores and jobs amid reports of a restructure
PUBLISHED: 17:56 19 March 2018 | UPDATED: 15:04 20 March 2018
Carpetright may be the latest retailer to close stores and cut jobs amid reports the firm is putting together a rescue plan.
The group, which has 38 stores across East Anglia including at Norwich, Lowestoft, Great Yarmouth and King’s Lynn, could go down the route of a company voluntary arrangement (CVA), 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.
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.”