Fu­ture of car­pet store looks se­cure

Wexford People - - NEWS - By ES­THER HAY­DEN

THE fu­ture of Car­petRight in Wex­ford is se­cure de­spite the fact the com­pany is clos­ing 92 stores.

Last Thurs­day Car­petRight an­nounced it is clos­ing 92 stores in­clud­ing five in North­ern Ire­land and cut­ting 300 jobs as part of a re­struc­tur­ing plan.

The com­pany re­leased a list of the stores due to close and for the mo­ment there are no planned clo­sures in the Repub­lic of Ire­land.

Car­petRight has 20 stores in the Repub­lic, in­clud­ing the store in the Wex­ford Re­tail

Park, Cork, Lim­er­ick,

Water­ford, Dublin,

Mullingar, Athlone,

Tralee and Kil­lar­ney.

The five stores in

North­ern Ire­land which have been ear­marked for clo­sure are the out­lets in Ban­gor,

Belfast (New­town­abbey), Col­eraine, Bal­ly­mena and Derry.

The re­tailer re­cently started talks with lenders to en­sure it does not breach the terms of its bank loans. It is plan­ning a com­pany vol­un­tary ar­range­ment (CVA) that will al­low it to shut the worst-per­form­ing stores and ask for rent con­ces­sions on an­other 113 sites.

It also said it had iden­ti­fied a ‘tech­ni­cal breach’ in its bor­row­ing agree­ment. The com­pany said it would raise £60m through a plac­ing of new shares, which would raise money to cut debt and pay for the re­struc­tur­ing plan.

The CVA needs ap­proval from cred­i­tors and share­hold­ers, which it will seek at meet­ings on April 26 and April 30 re­spec­tively.

Wilf Walsh, Car­petRight chief ex­ec­u­tive, 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.’

Car­petRight at Wex­ford Re­tail Park.

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