Hitchin’s Carpetright among 81 outlets proposed for closure
- Credit: Archant
Hitchin could lose its Carpetright store by the end of September as the chain cuts back on outlets that it considers to be ‘poorly located or over-rented’.
The carpet and bed provider today announced it would be closing a quarter of its shops as part of a plan to restore profitability.
The store in Hitchin’s Queen Street is one of 81 stores across the UK that are set to close upon the approval of a company voluntary arrangement proposal.
Around 300 people are expected to lose their jobs nationally as a result of these closures. The company said it could not disclose the specific job loss numbers for Hitchin, but will redeploy as many colleagues as possible.
A Carpetright spokeswoman said: “We’re announcing today some tough but necessary steps to address our legacy property issues and restore our profitability.
“We are launching a CVA proposal that, if approved, will result in the closure of 81 poorly located or over-rented stores, from a UK total in excess of 400, later this year. Planned closures will not affect our customers, all orders will be fulfilled either by the original store or a neighbouring Carpetright where necessary.
“Regrettably, we expect this will mean that around 300 colleagues would leave the business but we will make every effort to find alternative roles for those affected wherever possible.
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“We’re also announcing that we plan to follow the CVA with an equity financing to raise £60 million of new funds to invest in our stores and online offer, to strengthen the competitive position of the ongoing business.
“It’s important to stress that throughout the CVA process, we will continue trading as normal and customers can continue to shop with Carpetright with confidence. We do not expect the proposed stores to close before September 2018.
“We will remain in close contact with all colleagues to keep them fully informed as we move through this process.”
The Stevenage outlet – which is in the Roaring Meg Retail Park – has not been listed as one of the stores proposed for closure.