Carpetright secures £60m lifeline

Struggling floor coverings retailer Carpetright has secured a £60m lifeline through an equity raise, it said today.

Carpetright

Last month the firm proposed an issue of 232.5 million new shares through a placing and open offer at a price of 28p per share.

It said the open offer closed on Tuesday and was 92.1 per cent subscribed. The balance of available stock will be taken up in the placing.

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In April creditors and shareholders of Carpetright backed a restructuring plan that involves 92 store closures and up to 300 job losses.

In May it also obtained a £15m shareholder loan.

Carpetright shares closed on Tuesday at 35p, valuing the business at £106m.