Carpetright losses poised to go as high as £9 million

Carpetright has said it will book annual losses of up to £9 million after the struggling retailer’s shareholders rubber-stamped a mass store closure programme.

The group said that it expects a full-year underlying pre-tax loss of between £7m and £9m, which compares with a £14.4m profit last year.

It comes as investors approved its company voluntaryarrangement(cva), a process that will allow it to shut loss-making outlets and secure rent reductions.

Carpetright has earmarked 81 stores for closure as part of the restructure, with rent on a further 113 set to be slashed as part of the plan. A total of 300 jobs are at risk as a result of the CVA.

Last week the company secured the backing of creditors and landlords for the CVA and attention will now be turned to efforts for an equity fundraising.

Carpetright is attempting to raise some £60m through a rights issue. Boss Wilf Walsh said: “The CVA proposal will enable us to take the tough but necessary actions needed to restore our profitability.”