CARPETRIGHT is to axe 92 of its stores in the latest blow to the high street.
Some 300 workers are expected to lose their jobs, with the retailer blaming “tough trading” for the cuts.
Shares in Carpetright fell by 24 per cent this morning following the announcement.
The struggling retailer, which has 434 shops in the UK, said that 11 stores have already stopped trading.
The closures are part of a rescue plan that will also see the company negotiate cuts in rent.
The firm is today proposing a so-called Company Voluntary Agreement (CVA), which will allow it to restructure the business and pay down its debts.
Carpetright boss Wilf Walsh said: “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.”
“We will remain in close contact with all colleagues to keep them fully informed as we move through this process.”
The firms creditors will vote on the CVA proposal on April 26. The company will then hold a meeting with their shareholders to ask for their approval on April 30.
Carpetright stores to be closed under proposed CVA
HERE is the list of Carpetright stores to be closed under the proposed CVA
Belfast – Newtownabbey
Edinburgh – Leith
Glasgow – Great Western Road
Glasgow – Parkhead Forge
Hamilton – Carpetright
Hamilton – Sleepright
Inverness – Merkinch
Leeds – Birstall
Leeds – Hunslet
Reading – Oxford Road
Sheffield – Meadowhall
Sunderland – Castletown
Thornton Heath – Carpetright & Sleepright
Wakefield – Cathedral
Wakefield – Westgate (Storeys)
Wigan – Robin Park
York – Foss Island
The news is the latest hammer-blow to a troubled high street.
Retailers have been suffering from falling consumer demand, more people choosing to shop online rather than instore and higher overheads.
Earlier this year, two of the country’s largest retailers, Toys R Us and Maplin collapsed putting 5,500 jobs at risk.
In March, fashion retailer Next also revealed it will axe 60 of its shops putting 980 jobs at risk.
Meanwhile, baby chain Mothercare is reportedly considering whether to close up a third of its stores as it struggles to survive on the high street.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at firstname.lastname@example.org or call 0207 78 24516. Don’t forget to join the Sun Money’s Facebook group for the latest bargains and money-saving advice.