Carpetright has reported a £70.5 million annual loss and falling sales as the retailer continues to struggle throughout the “very difficult year”.
The troubled retailer swung into a loss following the costs of a restructuring program, which involves the closure of 92 stores, and weak sales.
Wilf Walsh, chief executive of the group, said the retailer is working on a recovery plan.
“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,” he said.
In the year to 28 April, Carpetright sales fell 3.6 percent.
The group’s loss is compared to a £900,000 pretax profit a year earlier.
Earlier this year, the group agreed to a Company Voluntary Arrangement (CVA), allowing it to close stores and reduce rent by up to 50 percent on 113 more stores.
David Madden, an analyst at CMC Markets, said: “Carpetright has had a difficult few months. Things have gone from bad to worse in 2018, as the company had more than its fair share of profit warnings, which has taken its toll on the share price.”
“The good news is that the CVA has given the company some much-needed breathing space.”
Carpetright is among several high street retailers who are going through a difficult period.
Maplins fell into administration in February and closed all 200 stores. Last week, House of Fraser announced plans to close half of its stores. Up to 6,000 jobs are set to be axed as a result of the House of Fraser closures.
Mothercare (LON: MTC) and Poundworld have also reported disappointing results this year.
Shares in Carpetright (LON: CPR) fell two percent on the news.
