Carpetright confident as it lands £15 million lifeline cash

The boss of beleaguered Carpetright on Friday struck a confident tone after he bagged extra cash to keep it afloat.

Chief executive Wilf Walsh said: “The long-term aim is to rebase the company. I’m confident, as a market leader, we can do that.”

Last month the carpets chain won the backing of creditors and shareholders to close 81 stores, with rent on 133 further stores to be cut, to avoid going bust. Around 300 jobs are at risk.

Carpetright today secured a £15 million loan from Meditor, its largest shareholder, after it received £12.5 million in March. It will have to pay a £2.25 million fee for the loan.

The fresh funds should help it tap investors for a further £60 million at the end of next week.

“The equity fundraising, that’s the important thing right now,” added Walsh.

The ailing retailer, worth £28.5 million, is expected to make a loss of £7 million to £9 million. It issued four profit warnings in five months.

The shares today fell 5% to 38p.