Carpetright to close its Bicester store as firm axes 300 jobs

The Launton Road Retail Park store is one of 81 stores to close across the country, cutting 300 jobs.

The Banbury store, at Banbury Cross Retail Park, is to remain open.

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

Under the restructure, the chain will also be slashing the rent on another 113 stores under the company voluntary arrangement (CVA) proposals being put to landlords.

The group has also confirmed an investor cash-call to raise £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.

Carpetright chief executive Wilf Walsh said: “These tough but necessary actions will enable us to address the burden of a legacy UK property estate consisting of too many poorly located stores on unsustainable rents, and are essential if we are to restore our profitability and deliver a successful turnaround.”

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.