Deal agreed

Carpetright agrees takeover by major shareholder Meditor

Carpetright (company pic)

Carpetright: new owner (pic: Carpetright)

Troubled floor coverings retailer Carpetright is being acquired by its largest shareholder, Meditor.

Carpetright said last month that the two parties were in talks, and it has now accepted Meditor’s offer of 5p a share, which values the company at £15.2m.

The retailer has debts of about £56m, and has said it needs about £80m to both pay off debts and provide working capital.

Chairman Bob Ivell said he believed the offer was “in the best interests of all stakeholders”.

He added: “While we have made significant progress with our recovery plan for the Carpetright Group, our ability to invest in the future of the business has been constrained against the backdrop of limiting banking covenants and a very challenging consumer market.

“With a recapitalised business and the backing of a committed new owner with the resources to invest in Carpetright for the long term, we will be able to complete our recovery in the private arena and emerge as a stronger business.”

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