Carpetright announces plans to close 10 Yorkshire stores

Carpetright has announced plans to axe 10 Yorkshire stores as part of a restructuring plan which could see the retailer shut 92 stores and cut 300 posts.

The company is planning a company voluntary arrangement (CVA) that will allow it to shut the worst-performing stores and ask for rent concessions on another 113 sites.

The group said of the 92 stores earmarked for closure, 11 have already stopped trading.

The Yorkshire stores are: Barnsley, Leeds – Hunslet and Birstall, Harrogate, Huddersfield, Scarborough, Sheffield – Meadowhall, Wakefield – Cathedral and Westgate, and York – Foss Island.

“We’re announcing today some tough but necessary steps to address our legacy property issues and restore our profitability,” Carpetright, which trades from 409 sites across the UK.

“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.”

The retailer also announced plans to raise £60m through a rights issue which it said would be used to invest in its stores, online offer, and to strengthen the competitive position of the ongoing business.

Carpetright said: “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.”