Carpetright shares plunge amid fresh profit warning

Purvai Dua

Source: Photoshot

Retailer said conditions since January had ‘remained difficult’

Just a day after Toys R Us and Maplin fell into administration, shares in Carpetright fell 23 per cent in early trading after it issued its second profit warning since Christmas and raised the prospect of potential store closures and job cuts.

The retailer said conditions since January had “remained difficult” due to “continued weak consumer confidence” and it was in talks with its banks to ensure it complies with their lending terms.

The firm’s statement said: “Trading conditions in the weeks since the group last updated the market on 19 January 2018 have remained difficult, characterised by continued weak consumer confidence.”

“The group 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.

“In addition to the discussion with its lenders, the group is examining a range of options to accelerate the turnaround of the business and strengthen its balance sheet.

“This process remains at an early stage and the Group will update the market on these initiatives as required.”

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