Carpetright has announced that it will be closing 92 of its shops across the UK , putting 300 jobs at risk, in an attempt to overcome increasing financial pressure.
With profits falling, the carpet specialists have been struggling for some time. On top of the 92 stores set to close 113 other branches are hoping to have their rents cut if a company voluntary agreement (CVA) deal is agreed.
There are currently 409 stores located across the UK, so 92 stores closing is a loss of a significant chuck of their business.
Wilf Walsh, Carpetright CEO, said this: “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.”