Carpetright have reported a full year pre-tax loss of £70.5 million.
Like-for-like sales in the UK declined by 3.6% as a fall of 7.8% in the second half offset a first half uplift of 0.7%. Underlying EBITDA dropped to £2.9 million from the previous year’s £20.9 million due to the decline in sales and a lower margin rate.
Wilf Walsh, Carpet Right chief executive, said of the planned store closures: "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 said completing the turnaround will take time and will be "challenging" although the implementation of the CVA is now going ahead as planned with 92 stores on track for closure by the end September.
Walsh added: “As well as being demanding, the duration of this process means that the benefits will not be fully seen during 2018/19 and will only begin to take effect in the second half. However, we do believe that we now have a bedrock in place of a largely right sized and right rented retail estate supported by plans to develop a compelling digital offer that will see us grow profitable market share over the next few years.”
