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Carpetright wins backing for store closure plan

Carpetright has won backing for a rescue plan that will see dozens of stores closed and hundreds of jobs lost.
The embattled retailer was given the support of creditors and landlords for the Company Voluntary Arrangement (CVA) at a meeting on Thursday.
Carpetright had set out plans for the CVA - an arrangement which allows firms to shut loss-making outlets and secure rent reductions - earlier this month.It has earmarked 81 sites for closure, having already seen 11 stop trading, putting 300 jobs at risk. Rent on another 113 stores will also be cut in the restructuring.Chief executive Wilfred Walsh said: "Addressing our legacy property issues to reduce our fixed costs to sustainable levels is critical to securing Carpetright's recovery."Receipt of creditor approval for the CVA proposal will enable us to take tough but necessary action to establish a right-sized estate of stores on economic rents, which is essential to restoring profitability."Carpetright currently has around 400 UK stores with nearly 2,700 staff.
It is also attempting to raise €60m from shareholders through a rights issue to put the company on a firmer financial footing.Carpetright had first revealed in March that it was exploring measures to help it back onto its feet after difficult trading conditions, and that it was likely to report an annual loss.It is among the big high street names to be hit by a tough consumer environment over the last year, with households squeezed by inflation which until recently has been running ahead of wage growth.
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Recent months have seen the collapses of Toys R Us and Maplin as well as rescue plans involving store closures for fashion chains New Look and Select.Carpetright's latest announcement comes on the same day as Sky News revealed that discount retailer Poundworld had drawn up plans for a CVA which would see the closure of more than a quarter of its 355-store estate.
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