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Carpetright, the UK's largest floorcoverings retailer, says it has begun proactive discussions with lenders after sales remained below expectations and that it would report a loss for 2017–18.

 

In an update on trading and its financial position this morning, the retailer said conditions remained difficult, characterised by weak consumer confidence.


"While the trend in the group's UK like-for-like sales has improved through the intervening period, it remains negative," it said, adding that trading in the Rest of Europe has also improved, led by a recovery in like-for-like sales in the Netherlands.


"Although the important Easter trading period is still to come, UK like-for-like sales remain below management expectations and the group now expects to report a small underlying pre-tax loss for the year to April 28, 2018."


Carpetright added that it is "therefore proactively engaged in constructive discussions with its bank lenders in order to ensure it continues to comply with the terms of its prevailing bank facilities. The bank lenders have indicated that they currently remain fully supportive."


The company also said it is "examining a range of options to accelerate the turnaround of the business and strengthen its balance sheet" adding that this process remains at an early stage.

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