Carpetright has announced that its CVA proposal has been approved by a majority of more than 75% of the unsecured creditors of the company present at a meeting held on 26th April. The CVA shareholders' meeting is being held this morning.
In accordance with the statutory provisions, if shareholders do not approve the CVA, the decision of the creditors will prevail. The company continues to trade under the control of the directors, operating as a going concern.
Implementation of the CVA will be conditional upon a successful equity capital raising, which the still expects to launch on or around 18th May.
Wilf Walsh, CEO, says: "Addressing our legacy property issues to reduce our fixed costs to sustainable levels is critical to securing Carpetright's recovery. Receipt of creditor approval for the CVA proposal will enable us to take tough but necessary action to establish a right-sized estate of stores on economic rents, which is essential to restoring our profitability. Our focus now shifts to the forthcoming shareholder vote and to our preparations for the proposed equity financing which will recapitalise the business and enable Carpetright to address the competitive threat from a position of strength."
