Flooring retailer Carpetright in last-ditch talks over buy-out
PUBLISHED: 08:48 31 October 2019 | UPDATED: 08:48 31 October 2019
Flooring shop Carpetright faces a possible buy-out to save it collapsing under a mountain of debt of more than £50m.
Its biggest shareholder has tentatively offered to buy the retailer to avoid the company going under. This came as bosses at Carpetright, with stores across the region, in Norwich, Thetford, Dereham and Bury St Edmunds, explained current gross debt levels were at £56m.
Meditor, run by former Old Mutual fund manager Talal Shakerchi, has started discussions with the business and indicated it would be willing to pay 5p a share - valuing the business at just £15.2m.
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If the deal goes ahead, it will see Meditor take full control of Carpetright and the debts turned into equity in the business.
Meditor now has until November 28 to make an offer or walk away.
Carpetright has been struggling with a huge debt pile for several years and was forced to turn to Meditor for two short-term loans last year.
Last year had been particularly hard for Carpetright, with a company voluntary agreement (CVA) insolvency process leading to creditors taking a hefty cut to their debts.
It also led to 80 stores closing including at King's Lynn and Yarmouth. Earlier this year, the company revealed sales had taken a significant dent - down 13.4% to £386.4m with customers staying away over fears that the chain could collapse.