Carpetright has revealed new plans to raise £60 million to help restructure the group.

The struggling company will divide the £60 million to cover the costs of implementing the CVA, repay loans, fund spending under the firm’s new business plan, and ongoing working capital requirements.

Following the details of the fundraising, shares rose 11 percent.

Carpetright recently announced plans to close 92 stores in the UK, putting 300 jobs at risk.

“The £60 million proceeds from the placing and open offer will give us the resources we need to complete our restructuring and accelerate our recovery plan,” said Wilf Walsh, the group’s chief executive.

“As well as funding implementation of the CVA to create a right-sized estate of stores on sustainable rents, it will provide the necessary capital to refurbish and modernise the ongoing store estate and to upgrade our digital platform – both vital investments in our future.”

“We believe that a recapitalised market leader will ultimately be better for customers, suppliers, landlords and shareholders,” he added.

This week Mothercare revealed a restructuring agreement, where they plan to close 50 stores sending up shares 25 percent.