Published: Thu, April 12, 2018
Technology | By Christopher Mann

Carpetright in Beckton to close

Carpetright in Beckton to close

The move places about 300 jobs at risk although Carpetright, which employs approximately 2,700 workers, said efforts would be made to redeploy affected staff at other stores.

The crisis on the High Street saw 16 stores close every day past year as shopkeepers struggled in the face of rising costs and an onslaught from internet rivals.

Carpetright added that the rent will be slashed on another 113 under-performing stores as part of the rescue deal.

In a company voluntary arrangement announced today, the Purfleet-headquartered retailer said it had identified 205 sites in the United Kingdom that were either underperforming or on unfavourable lease terms.

The company will now seek creditor approval at a meeting on April for the company voluntary arrangement (CVA) which will allow the shop closures and lower rents, before asking shareholders for their backing on 30 April.

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The firm had revealed last month that it was exploring a rescue plan to get back on its feet after battling hard trading conditions.

It also warned it was likely to slump into the red this year and was looking at a range of options to beef up its balance sheet.

Trading conditions remain hard for the group, which still expects to incur a small underlying pre-tax loss for the FY year ending 28th April 2018.

Last month, Carpetright said it was exploring the feasibility of a CVA and a fundraising of between £40m and £60m to help drive a turnaround forward.

It also confirmed it was seeking to raise £60m from investors to fund plans to reboot the business and bring down debt.

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A Carpetright spokesperson said: "We're announcing today some tough but necessary steps to address our legacy property issues and restore our profitability".

The findings reflect ongoing turmoil on the High Street which has claimed Toys R Us and Maplin, leading to the loss of more than 5,000 jobs.

The future of the Carpetright store at Westwood is at risk following an announcement of closures across the country. The remaining outlets at the Boucher Road and Connswater Shopping Centre in Belfast and Cookstown will continue trading. If you have placed an order with a store that is set to close the store team will endeavour to complete your order before September.

'We will remain in close contact with all colleagues to keep them fully informed as we move through this process'.

Shares in Carpetright tumbled more than 23% at one stage after details of the proposals and rights issue.

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