Carpetright says negative headlines damaged sales

The boss of Carpetright on Tuesday claimed negative headlines about the embattled retailer had knocked sales as it posted widening losses.

Chief executive Wilf Walsh, who is trying to turn its fortunes around, said: “I can’t point the finger at the media. We did have two profit warnings, but the customers see the headlines.”

He argued that shoppers, who often have to pay a deposit for the wares, have been put off by doubts over Carpetright’s future.

Similarly, the boss of struggling Mothercare, Mark Newton-Jones, blamed the media last month for its slump in sales.

Carpetright’s half-year losses widened to £11.7 million for the six months to October 27, from £600,000 in the previous half.

It closed 65 stores of the 81 earmarked this year after striking a deal with creditors and landlords to prevent it from going bust.

Walsh added that he is looking to renegotiate rents for more than half of its existing 345 stores in Britain.

He will also stop refurbishing stores “until we decide which ones we want to keep open” and save money.

Revenues were down 15.7% to £191 million, while same-store sales in Britain fell 12.7%. It was forced to cut prices amid fierce competition.

Despite this, Walsh said Carpetright was on track to make money again if the restructuring goes to plan and it will save £19 million.

The shares were up 8.7%, albeit from a low base, and trading at 17.7p.