Carpetright stores could close under rescue deal

A number of Carpetright stores could close as the retailer has revealed plans which allow the closure of underperforming stores.

The retailer, which has 409 UK shops, including one in Rochdale, is instigating a Company Voluntary Arrangement (CVA), in a similar move to fashion giant New Look earlier this month.

https://www.rochdaleonline.co.uk/news-features/1/business-news/116906/new-look-announces-store-closures

It is not yet known if Whitworth Road store is at risk.

The company is also understood to have secured £12.5m in funding from a major investor to relieve ‘short-term funding pressure’, according to the BBC.

A Carpetright spokesman said: “We have announced today that we are exploring the feasibility of a CVA to help us address the legacy property issues which have left us burdened with too many poorly located stores on rents which are simply unsustainable.  No final decision has been taken and it is too early to confirm which stores may be affected.  

“We have also announced a successful fund raising which will enable us to make the necessary decisions on this process free from short term funding pressure.  

“In the interim, it is very much business as usual for all of our stores and we look forward to serving customers through the important Easter trading period.”