Carpetright drafts in advisers as it mulls cost cutting options
Carpetright has reportedly hired advisers to explore cost-saving measures as it struggles amid a slowdown in demand.
A report in the Times said that the specialist retailer, which employs over 3,000 people, has hired Teno to explore business options that could possibly lead to store closures.
The company’s revenue was £372.6m in the 14 months to January 1, 2022, down from £493.2m in the 18 months to October 31, 2020.
It comes amid a tough period for retailers, as shoppers pause spending on big-ticket items due to the cost-of-living crisis.
Carpetright has also faced increased competition from rivals such as Tapi, which Martin Harris, the son of the Carpetright founder Lord Harris of Peckham, started.
City A.M. has contacted Carpetright for comment.
A spokesperson for the retailer told The Times it was “not in planning” for another company’s voluntary arrangement, but had a “number of advisers looking at how we improve our performance, as we do in the normal course of business”.
Carpertright launched a CVA back in 2018 which entailed 81 store closures, rent reductions and business restructure in order to stay alive.
Home improvement retailers have struggled as shoppers have put DIY improvements on the back burner amid an economic squeeze.
Kingfisher, the owner of B&Q and Screwfix, issued two profit warnings in the year to January.
Carpertright was founded in 1988 and currently has over 400 stores across the UK and Europe.