Carpetright looks for cost-cutting to meet reduced demand
April 8, 2024
Carpetright is reported to be reviewing its 400-store estate and seeking cost-cutting measures after a slowdown in demand for flooring.
According to a report in The Times newspaper, the group has appointed restructuring specialists Teneo, to explore various options to improve the performance of the loss-making flooring chain.
The newspaper says Carpetright "has been troubled recently as consumers reduce their spending. It has also suffered intense competition from rivals such as Tapi."
The retailer was forced to turn to a company voluntary arrangement (CVA) in 2018 to exit under-performing shops and reduce rents but a spokeswoman for Carpetright said it was “not in planning” for another CVA and said the group had a “number of advisers looking at how we improve our performance, as we do in the normal course of business."
Underlying losses before tax for the the 14 months to January 1, 2022 were £23.4 million, an improvement on a previous loss of £53 million.
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