Carpetright to close Telford store but keep Oswestry and Shrewsbury open

But under the sweeping restructure, the stores in Shrewsbury and Oswestry are due to stay open.

The chain said that, overall, 92 sites had been earmarked for closure, although 11 have already stopped trading, with the rent on another 113 set to be slashed under the company voluntary arrangement (CVA) proposals being put to landlords.

It said it hopes to relocate staff where possible.

The group – which employs nearly 2,700 staff in total – also confirmed an investor cash-call to raise around £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.

A statement on behalf of Carpetright said: “We’re announcing today some tough but necessary steps to address our legacy property issues and restore our profitability.

"We are launching a CVA proposal that, if approved, will result in the closure of 81 poorly located or over-rented stores, from a UK total in excess of 400, later this year.

"Planned closures will not affect our customers, all orders will be fulfilled either by the original store or a neighbouring Carpetright where necessary.

“Regrettably, we expect this will mean that around 300 colleagues would leave the business but we will make every effort to find alternative roles for those affected wherever possible.

"We’re also announcing that we plan to follow the CVA with an equity financing to raise £60 million of new funds to invest in our stores and online offer, to strengthen the competitive position of the ongoing business.

“It’s important to stress that throughout the CVA process, we will continue trading as normal and customers can continue to shop with Carpetright with confidence. We do not expect the proposed stores to close before September 2018.

“We will remain in close contact with all colleagues to keep them fully informed as we move through this process."

Shares in Carpetright tumbled more than 23 per cent at one stage after details of the proposals and rights issue.

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.

It said the CVA – which is a form of insolvency aimed at protecting a business from going bust by cutting its costs – will help it to "address the competitive threat from a position of strength".

Landlords will vote on the plans on April 26, while shareholders will have their say on April 30.