Carpetright reports £70 million loss

Carpetright report £70 million loss
Carpetright reports a £70 million loss just weeks after it launched a CVA that will lead to the closure of 81 stores

Carpetright have reported a pre-tax loss of £70 million for the year ending 28 April 2018. as the struggling retailer’s revenue decreased by 3.0% to £443 million.

Carpetright agreed to a Company Voluntary Arrangement (CVA) with its creditors in April and is set to close 81 of its stores.

In what has been described as ‘tough trading conditions’, like-for-like sales in the UK for the full year declined by 3.6%. In Europe, like-for-like sales grew by 1.2%, although down on the 2.5% growth in 2017.

‘Difficult Financial Year’

Commenting on the results Wilf Walsh, Chief Executive, said:

“It has been a very difficult financial year for our business.  After a disappointing first half, our Boxing Day sale started and never really got going.  With significantly increased competition and signs of a slowdown in consumer spending this left us exposed, particularly given our historically oversized and over-rented estate.”

“After a difficult trading year impacted by reduced consumer spend, increased competition and the legacy of an unsustainable, over rented store portfolio – the CVA and recapitalisation offers us the chance to rebuild Carpetright which remains the clear market leader in floor coverings with outstanding consumer brand awareness.  This will be a transitional year for the Group as we work through our recovery plan.”

Carpetright’s first store was opened in 1988. In addition to the UK, the company operates in The Netherlands, Belgium and the Republic of Ireland. Carpetright has joined a long list of struggling retailers such as Mothercare, House of Fraser and Carphone Warehouse who have entered into a CVA to rescue the company.