Carpetright 'could close stores' amid insolvency concerns

Tue, 20 Mar 2018 | BUSINESS NEWS

High street carpet giant Carpetright has revealed it could cut jobs and close stores as it considers the possibility of insolvency.

The group, which currently has 409 UK stores, has revealed it's exploring a "range of options" including a company voluntary arrangement (CVA), a form of insolvency that could allow the business to close any shops making losses and benefit from discounts on rental costs.

Carpetright revealed in March it is set to report to a full-year loss and will begin talks with lenders imminently to ensure the company does not breach the terms of its funding.

Since confirming its precarious position, Carpetright has seen the value of its shares fall more than 10 per cent on the London Stock Exchange. This blow follows a share price crash in January, when investors were warned over a fall in UK Christmas sales of 3.6 per cent.

"As announced on March 1 we are examining a range of options to accelerate the turnaround of the business and strengthen its balance sheet," said a Carpetright spokesperson. "This process is ongoing and the group will update the market on these initiatives as required."

As Carpetright approaches the point of insolvency it risks joining the likes of fashion retailer New Look and restaurant chains Prezzo and Jamie's Italian, all of which have taken the route of a CVA already this year.

Similarly, the news follows the collapse of fellow retailers Toys R Us and Maplin, both of which have succumbed to the waning success of the high street, affecting more than 5,000 jobs across the country.


Share this article



Latest Businesses for Sale

Independent Plumbers Merchant
North East, UK

North East based plumbers merchant supplying local tradesman with an extensive range of plumbing and heating equipment in addition to a wide variety of bathroom products. Comprehensive design and product support service such as 3D design. Stocks high...

Asking Price: Offers Invited
Turnover: £1,231,000

Sales & After-sales Services for Major Manufacturer of Food Processing Equipment
UK Wide

Exclusive UK sales & after-sales service provider for a German manufacturer of food processing equipment. Predominantly works across the convenience foods confectionery dairy & meat processing sectors adding value to the product range through advance...

Asking Price: Offers Invited
Turnover: £2,613,000

Supplier of HVACR Products with E-commerce Platforms
UK Wide

Established trade supplier of heating ventilation air conditioning and refrigeration (HVACR) products such as walk-in cold rooms freezer rooms and commercial refrigeration equipment and components as well as access panels and commercial and domestic...

Asking Price: Offers Invited
Turnover: £805,449


View more businesses for sale

News Search

Latest News

 
07
 
Aug
 

Wrexham-based wire firm falls into administration | ADMINISTRATION

Wire manufacturer Wrexham Wire has fallen into administratio...

 
06
 
Aug
 

Leading UK tour operator Ski Weekends enters administration | ADMINISTRATION

One of the UK’s leading ski tour operators Harris Holi...

 
05
 
Aug
 

Pizza Express puts itself up for sale and looks to close 67 outlets | BUSINESS SALE

Pizza Express has announced that it is seeking a buyer for i...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
15
 
Nov
 

Carpetright agrees to shareholder takeover deal | BUSINESS SALE

Carpetright has agreed a deal to be taken over by its larges...

 
04
 
May
 

Jacques Vert owner 'prepares to call administrators' | ADMINISTRATION

Calvetron, owner of fashion brand Jacques Vert and other fas...

 
29
 
Mar
 

Bargain Booze owner Conviviality to file for administration | ADMINISTRATION

The firm that owns several discount alcohol shops – in...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources