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East Anglia Future 50

Struggling retailer secures interim funding to keep trading

PUBLISHED: 09:10 11 May 2018 | UPDATED: 09:10 11 May 2018

Carpetright creditors approved plans last month to close 92 stores and axe up to 300 jobs in a deal to rescue the firm. Picture: Danny Lawson/PA Wire

Carpetright creditors approved plans last month to close 92 stores and axe up to 300 jobs in a deal to rescue the firm. Picture: Danny Lawson/PA Wire

Troubled retailer Carpetright has clinched emergency funding to help it keep trading with a £15m unsecured loan, the company confirmed on Friday.

The loan, from shareholder Meditor European Master Fund, will assist the company with short-term working capital until a planned £60m share placement later this year.

The company announced it would cut several stores last month with King’s Lynn and Great Yarmouth among the axed sites.

Carpetright has a further 36 stores across East Anglia including in Norwich, Ipswich, Lowestoft, Thetford and Sudbury.

It is not the only retailer struggling in recent times with Toys R Us closing earlier this year and businesses such as Maplin and Jacques Vert entering administration amid challenges from online shopping and rising inflation.

Others, particularly in the fashion and restaurant sectors, have entered company voluntary arrangements which see them shed loss-making stores and reduce their debts. These have included New Look, Prezzo, Jamie’s Italian and Byron.

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