It’s Carpetfright as sales floored Chain battling to survive after £70m annual loss

CARPETRIGHT has crashed to a £70million loss.

Sales dived last year and debts rocketed as some suppliers refused to sell to the flooring chain amid concerns over its future.

The retailer has already responded by announcing plans to close more than 80 stores.

And bosses admit recent hot weather has only helped to dent demand further.

Last year’s loss – from a £900,000 profit in 2016 – was fuelled by the company slashing the value of certain assets because of its tough trading.

Group sales fell 3% to £443.8million. And UK takings down 3.6% over the year disguise the fact that the decline worsened from a 0.7% drop in the first six months to a 7.8% full-on dive in the second half. Carpetright’s results come after it pushed through a Company Voluntary Agreement to shut 81 stores.

The closure programme, which is due to be completed by the end of September, will lead to the loss of hundreds of jobs. Debts jumped from £9.8m to £53m, which Carpetright said was due to

Oil = $76.00 suppliers “tightening their credit terms”. Boss Wilf Walsh said: “This will be a transitional year for the group as we work through our recovery plan.” Shares in Carpetright dived another 5.6% to less than 29p yesterday, having collapsed more than 80% in the past year.

Paul Hickman, analyst at Edison Investment Research, said: “Like a man reeling from a precipice, Carpetright’s full-year results give a dizzying glimpse over the edge.” Matthew Walton, analyst at Globaldata, said: “With little momentum in the housing market, and customers remaining cautious, it will take time for Carpetright to reap the benefits. But with losses mounting, time is not on its side.”