Carpetright is the Latest Store To face Closures

• Following Toys R Us and Maplin closing, and many others struggling
• Jobs and stores under threat
• The retailer needs a £60 million cash injection to prevent closing entirely

Struggling retailer, Carpetright, has put jobs and stores under threat, as it draws up restructuring plans to prevent going into administration.

The group is planning on closing an unknown number of poorly performing stores, as well as try to get £60 million from investors.

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.

This would involve shutting the worst performing stores and trying to secure discounts on rental costs.

Wilf Walsh, Carpetright chief executive, said, “I am pleased that we have secured additional support from one of our major shareholders as we continue to explore the feasibility of a CVA and conditional equity issue.

“These further cash resources will enable us to make the necessary decisions free from short-term funding pressure.”

This marks another bad day for Britain’s high street, with huge companies like Mothercare and Homebase also having to shut stores, and Toys R Us and Maplin closing for good.