CarpetRight To Close Stores And Cut Jobs
- Retailer trying to prevent going into administration
- Needed £60 million to stay in business
- Almost 100 sites to close in total- close to a quarter of all outlets
- One of many shops to go under this year
An estimated 300 jobs are to be cut at Carpetright after the retailer announced plans to shut stores to avoid falling into administration.
Overall, 92 sites will be closing, although 11 have already stopped trading.
Carpetright has also cut rents on 113 stores, but will still need to get £60 million from its investors to stay in business.
It said it hopes to relocate staff where possible, but will still lose at least 300 jobs.
The details came as it revealed a ‘technical breach’ of its banking arrangements, but the group said it was taking action to address this and ensure it is amended for the future.
Wilf Walsh, Carpetright chief executive, 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.
“We will remain in close contact with all colleagues to keep them fully informed as we move through this process.”
Earlier in the year, it said it was “exploring” a company voluntary agreement to help its financial position, which is what New Look has currently secured in order to prevent total closure of stores.
The rescue deal that it has secured, which is being handled by accountancy firm Deloitte, marks another dark day for the retail sector, which has already seen jobs cut from Toys R Us and Mothercare, among others.
High street retailers have been hit by a drop in consumer spending, soaring costs, and the increasing threat of online competitors.
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