Carpetright plans to shut 92 stores as it becomes the latest to seek CVA

Struggling floorings specialist Carpetright on Thursday firmed up its plans to overhaul the business as it fights for survival.

The retailer, which has been grappling with poor sales and a hefty rent bill, said it will close 92 stores from September onwards via a company voluntary arrangement if it gets the nod from creditors and shareholders.

The move will lead to 300 job losses but Carpetright will try to move staff to new roles where possible, chief executive Wilf Walsh promised. “It’s business as usual for customers,” he added.

It will also tap investors for £60 million of emergency cash, which will allow the company to pay down some of its £22.7 million debt and then reinvest in the business.

The company is the latest retailer to consider a CVA.

Ailing fashion chain New Look plans to slash 60 stores through a similar deal and toy seller Toys R Us, which fell into administration in February putting 3,000 jobs at risk, had also tried to use a CVA to stay afloat.