Carpetright feeling the burn as stores close - but one in East Anglia has been spared
PUBLISHED: 10:20 02 November 2018 | UPDATED: 10:20 02 November 2018
Carpetright is closing six more stores before Christmas, but the fate of one regional store, which had been earmarked for closure, looks more promising.
In the first half of the year, Carpetright closed 67 under-performing stores, including one in Great Yarmouth, and the Kings Lynn outlet had been on the company’s list of stores scheduled to be closed down.
But a spokesperson for the company said this morning: “We are currently trading in Kings Lynn with no set plans to close the store.”
The fate of stores in Suffolk and East Essex hangs in the balance, as the spokesperson added: “We cannot comment on whether we will be shutting down stores in those areas as it is confidential and an ongoing process.”
Like-for-like sales at Carpetright remained in negative territory in the latter part of the 26 weeks to October 27, while restructuring disruption took its toll.
The company is pushing through a Company Voluntary Agreement (CVA), an insolvency procedure allowing it to shut 81 stores.
The store closure programme will lead to the loss of hundreds of jobs.
Boss Wilf Walsh said: “This is a transitional year for Carpetright as we work through our restructuring plan.
“I am pleased to report that this activity is firmly on track and has started to yield benefits as we create a right-sized and well-located portfolio of stores on sustainable rents.
“We also continue to modernise our existing estate as well as investing in our digital capability.”
The retailer also secured £65 million of equity financing to fund the business while it carries out store closures.
Carpetright said it is confident of achieving the £19 million of benefits announced as part of its recapitalisation.