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  1. ITV Report

Carpetright cuts around 300 jobs as another 81 stores to close

The troubled retailer is cutting staff and closing stores Credit: PA

Carpetright is closing another 81 stores, cutting around 300 jobs as the embattled company undergoes a sweeping restructure.

Ninety-two sites had been earmarked for closure overall, although 11 have already stopped trading.

The rent on another 113 is set to be slashed under the company voluntary arrangement (CVA) proposals being put to landlords.

The group - which employs nearly 2,700 staff in total - also confirmed an investor cash-call to raise around £60 million through a rights issue to put the company on a firmer financial footing.

The details came as it revealed a "technical breach" of its banking arrangements, but the group said it was taking action to address this and ensure it is amended for the future.

The chain said it hopes to relocate staff where possible.

ITV News correspondent Joanna Partridge has the full list of stores to be closed.

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The company's chief executive Wilf Walsh said the "tough but necessary" restructuring would allow the company to address the issue of unsustainable rents in poorly located stores.

Shares in Carpetright tumbled more than 23% at one stage after the announcement.

The firm, which has 409 UK shops, said trading had remained "difficult" since its last update on March 1, with the group continuing to expect a small underlying loss for the year to April 28.

Landlords will vote on the plans on April 26, while shareholders will have their say on April 30.

It has been a tough period for a number of big high-street retailers Credit: PA

Carpetright's rescue deal - which is being handled by Deloitte - marks another dark day for the sector, which has already seen thousands of jobs axed following the collapse of well-known retailers.

A drop in consumer spending, increasing costs and competition from online have all been impacting on the high street.

  • Toys R Us announced the closure of all of its stores leading to 3,000 job losses.
  • New Look announced plans to axe almost 1,000 jobs and close 60 stores
  • Maplin collapsed putting 2,500 jobs at risk
  • Debenhams announced the review of 21 warehouses and stores that could put 220 jobs in jeopardy
  • Mothercare and Moss Bros issued profit warnings after a slump in sales.