Carpetright launches £60m fundraising plan
Carpetright has officially launched its plan to raise £60 million in emergency funding as it looks to turn around its struggling business.
In a statement, the carpet and flooring retailer said the funds will be raised through the issue of new shares at a price of 28 pence each.
The proceeds from the fundraising will be used to cover costs associated with implementing Carpetright’s company voluntary arrangement, to repay a short-term loan from major shareholder Meditor, and to fund the company’s capital expenditure plans that form part of its new business strategy.
Wilf Walsh, chief executive of Carpetright, said: “The £60 million proceeds from the placing and open offer will give us the resources we need to complete our restructuring and accelerate our recovery plan.
Never Miss a Retail Update!“As well as funding implementation of the CVA to create a right-sized estate of stores on sustainable rents, it will provide the necessary capital to refurbish and modernise the ongoing store estate and to upgrade our digital platform – both vital investments in our future.”
The fundraising is subject to approval at a general meeting in June although Carpetright said the plan has the strong support of shareholders.
