CARPETRIGHT is to shut 92 stores and axe 300 jobs as part of a rescue plan.
The retailer is also seeking to raise £60million from investors to help turn around its fortunes. And it is in talks with landlords to cut rents on 113 stores.
The measures come as the chain seeks to enter a company voluntary arrangement to ensure it does not breach the terms of its bank loans.
Chief executive Wilf Walsh said the ‘tough but necessary actions’ were essential to ‘restore our profitability’.
Shares in the retailer, which employs 2,700 staff in 409 stores — fell 23 per cent following yesterday’s announcement.
Carpetright said 11 of the 92 stores earmarked for closure had already ceased trading. It hopes to relocate staff where possible. The retailer said ‘difficult’ conditions will see it make a small annual loss, but cutting costs will help it ‘address the competitive threat from a position of strength’.
Shareholders will vote on the plan at the end of the month. The rescue deal, led by Deloitte, marks another dark day for Britain’s high streets, which have been hit by lower consumer spending, soaring costs and online competitors.