Carpetright still feeling the burn as stores close

Sales at Carpetright remained under pressure in the first half of the year as the struggling retailer presses ahead with a store closure plan.

The company said like-for-like sales remained in negative territory in the latter part of the 26 weeks to October 27, while restructuring disruption took its toll in the first three months of the period.

The update came as the company pushes through a Company Voluntary Agreement (CVA), an insolvency procedure allowing it to shut 81 stores.

In the first half, Carpetright closed 67 under-performing stores, with a further six expected to shut by Christmas.

The store closure programme will lead to the loss of hundreds of jobs.

Boss Wilf Walsh said: “This is a transitional year for Carpetright as we work through our restructuring plan.

“I am pleased to report that this activity is firmly on track and has started to yield benefits as we create a right-sized and well-located portfolio of stores on sustainable rents.

“We also continue to modernise our existing estate as well as investing in our digital capability.”

The retailer also secured £65 million of equity financing to fund the business while it carries out store closures.

Carpetright said it is confident of achieving the £19 million of benefits announced as part of its recapitalisation.