JOB LOSSES
Carpetright to close 92 stores with the loss of 300 jobs
The struggling retailer, which has more than 400 shops in the UK, said that 11 stores have already stopped trading
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.
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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.
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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
Ayr
Ballymena
Bangor (N.I.)
Barnsley
Beckton
Belfast – Newtownabbey
Bicester
Birmingham Stechford
Blackwood
Bodmin
Borehamwood
Burgess Hill
Burnley
Bury
Caerphilly,
Catford
Coleraine
Derry/Londonderry
Dudley
East Grinstead
Edinburgh – Leith
Exeter
Exmouth
Falkirk
Folkestone
Fraserburgh
Glasgow – Great Western Road
Glasgow – Parkhead Forge
Gloucester
Great Yarmouth
Greenock
Guildford
Hamilton – Carpetright
Hamilton – Sleepright
Harrogate
Hayes
Hitchin
Honiton
Huddersfield
Inverness – Merkinch
Kidderminster
Kings Lynn
Launceston
Leeds – Birstall
Leeds – Hunslet
Lewes
Lichfield
Lincoln
Livingston
Llanelli
Luton
Maidenhead
Neath
Oldham
Putney
Reading – Oxford Road
Redhill
Renfrew
Scarborough
Scunthorpe
Sheffield – Meadowhall
South Shields
St Austell
St Helens
Stafford
Stanmore
Stratford-upon-Avon
Streatham Common
Strood
Sunderland – Castletown
Telford
Thanet
Thornton Heath – Carpetright & Sleepright
Tiverton
Wakefield – Cathedral
Wakefield – Westgate (Storeys)
Walsall
Warminster
Wigan – Robin Park
Wishaw
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.
CLOSING TIME? Mothercare may close a THIRD of stores as it struggles to survive on the high street
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.
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