Carpetright has announced that its shareholders are supporting its planned turnaround by buying the vast majority of new shares issued in an effort to raise £60m, which will help the retailer fund a CVA and rationalise its store estate.
The retailer has received valid acceptances from qualifying shareholders amounting to 92.1% of the new equity, with the remaining shares to be taken up after the placing.
Upon issuing the shares, CEO Wilf Walsh said: "The £60m proceeds from the placing and open offer will give us the resources we need to complete our restructuring and accelerate our recovery plan. 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. We believe that a recapitalised market leader will ultimately be better for customers, suppliers, landlords and shareholders."
Both the placing and the open offer were confirmed in a general meeting.
"Successful completion of the fundraising is a major milestone in our recovery plan," says Wilf, "and we would like to thank our existing shareholders and new investors for their strong support.
"The £60m net proceeds give us the resources we need to accelerate our turnaround by creating a right-sized portfolio of stores on sustainable rents, modernising our store estate and upgrading our digital platform. Carpetright remains the clear market leader, and our strengthened balance sheet provides a solid platform on which we can build our recovery for the benefit of customers, colleagues, shareholders, suppliers, and landlords.”