CARPETRIGHT SUFFERS AFTER STORES AXED
TROUBLED retailer Carpetright has unveiled stinging losses for a period in which it underwent a major store closure programme.
For the 26 weeks to October 27, the group made a loss before tax of £11.7million.
Underlying earnings swung to a loss of £1.7million compared with a profit of £8.6million this time last year.
Group revenue was down 15.7 per cent, with Carpetright saying sales in the first quarter had been affected by bad publicity and challenges in stock availability.
Carpetright also said it was braced for a dip in consumer spending and confidence after Brexit, but that its restructuring plan meant it was “best placed to deal with the challenges these headwinds might present”.
The firm gained approval for a company voluntary arrangement in April, allowing it to close up to 81 under-performing sites.
Of these, 54 were shut in the period and another two are to close in the second half. Another 25 continue to trade without paying rent.
Chief executive Wilf Walsh said: “This is a transitional year for Carpetright.
“We remain on schedule and are confident that this activity is already starting to yield benefits.
“This is the first stage in returning the group to sustainable long-term profitability.”