Carpetright announces East Midlands closure

Just one East Midlands Carpetright store is to be closed as part of the firm’s CVA rescue deal, it has been revealed.

The Lincoln store will shut, along with 91 other stores as the stricken retailer tries to salvage its business.

A spokesperson for Carpetright told TheBusinessDesk.com: “We’re announcing today some tough but necessary steps to address our legacy property issues and restore our profitability.

“We are launching a CVA proposal that, if approved, will result in the closure of 81 poorly located or over-rented stores, from a UK total in excess of 400, later this year. Planned closures will not affect our customers, all orders will be fulfilled either by the original store or a neighbouring Carpetright where necessary.

“Regrettably, we expect this will mean that around 300 colleagues would leave the business but we will make every effort to find alternative roles for those affected wherever possible.

“We’re also announcing that we plan to follow the CVA with an equity financing to raise c. £60m of new funds to invest in our stores and online offer, to strengthen the competitive position of the ongoing business.

“It’s important to stress that throughout the CVA process, we will continue trading as normal and customers can continue to shop with Carpetright with confidence. We do not expect the proposed stores to close before September 2018.

“We will remain in close contact with all colleagues to keep them fully informed as we move through this process.”