Carpetright shops in Grampian and the Highlands are under threat of closure after the retailer announced restructuring plans that will see it axe poorly performing stores.
The struggling carpet chain operates shops in Aberdeen, Fraserburgh, Elgin and Inverness. The group said it was “exploring” a company voluntary arrangement (CVA) to help shore up its financial position, a move which would allow it to close loss-making shops and secure deep discounts on rental costs.
It is the third major retailer that has run into difficulties in recent months. A closing down sale is under way at Toys R Us and Maplin is currently in administration.
It is not known which Carpetright shops would close under the restructuring plans. If the CVA goes ahead, Carpetright would push through an equity issue of between £40m and £60m to fund plans to reboot the business.
The group, which has 409 UK shops, also agreed a £12.5m unsecured loan from major shareholder Meditor to help with “short-term working capital requirements”.
Carpetright chief executive Wilf Walsh said it would be “business as usual” during Easter.