Carpetright to close Telford store
Retailer Carpetright has won the backing of creditors and landlords for a restructuring plan which is set to see its Telford store close.
Carpetright has earmarked 81 stores for closure as part of a company voluntary arrangement (CVA), which allows firms to shut loss-making outlets and secure rent reductions.
But under the sweeping restructure the stores in Shrewsbury and Oswestry are due to stay open.
The group won the backing of more than 75 per cent of creditors to push ahead with the plan and a total of 300 staff are now at risk of redundancy, although the firm hopes to place as many as possible in other roles within the group.
Earlier this month the chain said 92 sites were in the firing line, although 11 have already stopped trading, with rent on another 113 set to be slashed as part of the restructure.
Boss Wilf Walsh said: "Addressing our legacy property issues to reduce our fixed costs to sustainable levels is critical to securing Carpetright's recovery.
"Receipt of creditor approval for the CVA proposal will enable us to take tough but necessary action to establish a right-sized estate of stores on economic rents, which is essential to restoring our profitability."
The retailer has been hit by poor trading and is in "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.
