Carpetright (LON:CPR) shares sunk nearly 20 percent at market open on Thursday, after confirming a small pre-tax loss for the year alongside the closure of 92 stores.

It has finalised the terms of a company voluntary arrangement, during which it will close 92 stores on or after the 23rd September 2018.

“These tough but necessary actions will enable us to address the burden of a legacy UK property estate consisting of too many poorly located stores on unsustainable rents and are essential if we are to restore our profitability and deliver a successful turnaround,” Carpetright said.

The proposal will be put to the creditors for approval at a meeting on the 26th April 2018, with shareholders being asked on the 30th April.

Carpetright has over 400 stores in the UK and the recent underperformance of its stores has made meeting rent payments difficult. The group warned that high street trading conditions remain “difficult” but confirmed that performance would be broadly in line with March’s expectations, which is to deliver a small pre-tax profit for the year.

Carpetright also announced plans to raise net proceeds of around £60 million through equity capital.

Carpetright shares are currently down 17.52 percent at 34.60 (0828GMT).