Belfast Telegraph

Carpetright's shares plunge amid reports of rescue plan

By Ben Woods

Shares in Carpetright - which has eight stores in Northern Ireland - have plunged after reports the struggling retailer may close shops and axe jobs as it pieces together a rescue plan.

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It's understood the group could go down the route of a company voluntary arrangement, which would allow it to shut loss-making stores and secure deep discounts on rental costs.

Carpetright, which has 409 UK shops, said it was exploring "a range of options" to reboot the business and a final decision had not been made.

The prospect of a CVA - first reported by the Sunday Telegraph - sent shares tumbling more than 10% in morning trading on the London Stock Exchange.

Such a move would see Carpetright join the likes of fashion retailer New Look and restaurant chains Byron, Prezzo and Jamie's Italian, which have all embarked on CVAs since the start of the year.

It would also heap further misery on Britain's battered high street following the collapse of Toys R Us and Maplin, putting 5,000 jobs at risk. Carpetright revealed earlier this month that it was set to swing to a full-year loss.

Belfast Telegraph