Struggling retailer to close five stores in the North West

Struggling retailer Carpetright has confirmed it is to close five stores in the North West.

The business is fighting to stave off administration and has announced it is closing 92 stores across the UK with the loss of 300 jobs.

As part of the move branches in Burnley, Bury, Oldham, St Helens and Wigan have been earmarked for closure

Carpetright is the latest in a string of retailers to be hit by a downturn in consumer spending and changing shopping habits.

Other brands to have hit problems have include Bargain Booze, New Look, Toys R Us and Maplins.

The news came a day after it was announced Shop Direct is shedding 2,000 jobs in the North West.

Carpetright is fighting for survival and is asking for rent reductions at 113 of its stores as part of a company voluntary arrangement (CVA).

Completion of the CVA is dependent on the firm raising £60m from shareholders to reduce its debts.

The company also needs to find £15m in short-term funding to cover its costs.

Wilf Walsh, the chief executive of Carpetright, said: “These tough but necessary actions will enable us to address the burden of a legacy UK property estate consisting of too many poorly located stores on unsustainable rents and are essential if we are to restore our profitability and deliver a successful turnaround.

“Completion of the CVA and equity financing will enable us to establish an appropriately sized estate of modernised stores on economic rents, complemented with a compelling online offer, enabling Carpetright to address the competitive threat from a position of strength.”