Struggling retailer Carpetright has confirmed that it is looking into a CVA.
The move could result in the closure of as much as 100 of its 409 shops, amounting to around 866,200 sq ft.
As part of a strategy update, the retailer said the aim of a CVA would be “rationalising the company’s property portfolio in order to improve the long-term prospects of the business”.
Carpetright said: “The board believes that a CVA would not adversely affect the company’s ability to serve its customers.”
It added that following the CVA the company would look to raise between £40m and £60m through an equity issue.
Chief executive Wilf Walsh said: “The aggressive store opening strategy pursued by the company’s previous leadership has left Carpetright burdened with an oversized property estate consisting of too many poorly located stores on rents which are simply unsustainable.
“The company has worked hard over recent years to address this legacy issue and reduce the size of its property estate; however, many of these poor-performing stores still have long leases to run, which has limited our ability to exit a meaningful number in the short-to-medium term.”
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