Local Carpetright stores spared as 92 outlets axed

Tayside and Fife shops not among those to close in restructure

Tayside and Fife received a jobs reprieve yesterday after embattled retailer Carpetright announced plans to shut dozens of shops.

Around 300 jobs will be axed under the group’s plans to shut another 81 stores and tap investors for £60 million under a sweeping restructure.

However, the group’s operations in Tayside and Fife were not among the list of closure earmarked stores.

Overall, 92 sites are closing, although 11 have already stopped trading.

The rent on another 113 sites is set to be slashed under the company voluntary arrangement (CVA) proposals being put to landlords.

The group – which employs nearly 2,700 staff in total – also confirmed an investor cash-call to raise around £60m through a rights issue to put the company on a firmer financial footing.

The details came as it revealed a “technical breach” of its banking arrangements, but the group said it was taking action to address the situation.

Carpetright chief executive Wilf Walsh 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 on unsustainable rents, and are essential if we are to restore our profitability and deliver a successful turnaround.

“We will remain in close contact with all colleagues to keep them fully informed as we move through this process.”

Shares in Carpetright tumbled more than 23% at one stage after details of the proposals and rights issue were revealed, although some ground was recovered in later exchanges.

The firm, which has 409 UK shops, said trading had remained “difficult” since its last update on March 1, with the group continuing to expect a small underlying loss for the year to April 28.

It said the CVA – which is a form of insolvency aimed at protecting a business from going bust by cutting its costs – will help it to “address the competitive threat from a position of strength”.

Landlords will vote on the plans on April 26, while shareholders will have their say on April 30.

Picture: Kim Cessford. The Carpetright outlet at Kingsway West Retail Park in Dundee has been spared from closure .