Jobs threat as Carpetright announces plans to close stores amid troubled financial position

These are difficult times for the retail sector.
These are difficult times for the retail sector.

Embattled retailer Carpetright has put jobs under threat as it draws up sweeping restructuring plans which will close poorly-performing stores and see it tap investors for up to £60million.

The group said it was 'exploring' a company voluntary arrangement (CVA) to help shore up its financial position, a move which would allow it to close loss-making shops and secure deep discounts on rental costs.

If the CVA goes ahead, Carpetright would push through an equity issue of between £40m and £60m to fund plans to reboot the business and drive down debt.

The group, which has 409 UK shops, also agreed a £12.5m unsecured loan from major shareholder Meditor to help with 'short-term working capital requirements'.

Carpetright chief executive Wilf Walsh said it would be 'business as usual' for the flooring firm's stores during Easter and it would remain in 'close contact' with staff over its restructuring plans.