Carpetright closures 2018 – which branches are closing and what is a Company Voluntary Agreement?
CARPETRIGHT are closing nearly a quarter of their stores nationwide.
Here is why so many branches are closing and how to find out if your local store will be shutting it's doors.
Why is Carpetright closing so many stores?
Carpetright have chose to shut loss making stores due to several problems the company has been having in the last year.
The general cost of running the business going up, coupled with more consumers choosing to shop online rather than in store has a negative impact on the retailer.
As well as this, the rising price of rent on it's stores has been tough for Carpetright to cope with.
Carpetright are now proposing a Company Voluntary Agreement to try and get rid of some of the company's debt.
What is a Company Voluntary Agreement?
When a company cannot pay it's debt it can enter a Company Voluntary Agreement with it's creditors.
A Company Voluntary Agreement is a deal between a company and it's creditors to pay off a proportion of the debts debts over a long period of time.
During this period the company will not have to pay interest or charges on their debt.
Being able pay off smaller amounts of debt means that a company has the time and money to change the way the company has been running and get back in the black.
If a company fails to pay their debts during a Company Voluntary Agreement it may have to go into voluntary liquidation, which would bring the company to an end.
Carpetright are closing stores and trying to renegotiate their rent to avoid having to enter a Company Voluntary Agreement.
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Which Carpetright stores are closing?
Carpetright say they will be closing 92 of their UK stores.
The carpet retailer has over 400 shops in the UK.
These closures represent nearly a quarter of all UK Carpetright stores.
Carpetright have already closed 11 loss making stores, with 82 more to close in the coming months.
The carpet retailer says that is expects these stores to stay open until September 2018.
Below is the list of the stores that could be potentially closing.
Carpetright stores that could be potentially closing by September 2018
HERE is the list of stores that could face closure in the next few months.
- Ayr, Ballymena
- Bangor – Northern Ireland
- Barnsley
- Beckton
- Belfast – Newtownabbey
- Bicester
- Birmingham Stechford
- Blackwood
- Bodmin
- Borehamwood
- Burgess Hill
- Burnley
- Bury
- Caerphilly
- Catford
- Coleraine
- Derry/Londonderry
- Dudley
- East Grinstead
- Edinburgh – Leith
- Exeter
- Exmouth
- Falkirk
- Folkestone
- Fraserburgh
- Glasgow – Great Western Road
- Glasgow – Parkhead Forge
- Gloucester
- Great Yarmouth
- Greenock
- Guildford
- Hamilton – Carpetright
- Hamilton – Sleepright
- Harrogate
- Hayes
- Hitchin
- Honiton
- Huddersfield
- Inverness – Merkinch
- Kidderminster
- Kings Lynn
- Launceston
- Leeds – Birstall
- Leeds – Hunslet
- Lewes
- Lichfield
- Lincoln
- Livingston
- Llanelli
- Luton
- Maidenhead
- Neath
- Oldham
- Putney
- Reading – Oxford Road
- Redhill
- Renfrew
- Scarborough
- Scunthorpe
- Sheffield – Meadowhall
- South Shields
- St Austell
- St Helens
- Stafford
- Stanmore
- Stratford-upon-Avon
- Streatham Common
- Strood
- Sunderland – Castletown
- Telford
- Thanet
- Thornton Heath – Carpetright & Sleepright
- Tiverton
- Wakefield – Cathedral
- Wakefield – Westgate (Storeys)
- Walsall, Warminster
- Wigan – Robin Park
- Wishaw
- York – Foss Island
Is Carpetright the only store that has been struggling?
Other high street stores have been struggling to stay afloat due to the same problems faced by Carpetright
Mothercare are considering shutting a third of all their UK stores to reduce costs and pay off debts.
New look and Prezzo are also looking to shut stores through Company Voluntary Agreements.
Similarly Byron Burger and Jamie's Italian both agreed to Company Voluntary Agreements to shut stores earlier this year.
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