Carpetright has today revealed that it expects to report full-year pre-tax losses in the region of £7m to £9m.
The trading update comes as shareholders voted in favour of the struggling retailer’s CVA plans, which include closing 92 of its 418 stores and around 300 job losses.
Last week, creditors gave the store closure strategy the green light, but the final go-ahead is still conditional on interim funding of up to £15m and a successful equity capital raising.
Carpetright said that since it last updated the market, when it warned it would make a “small pre-tax loss”, conditions have “remained difficult”.
A combination of weak consumer confidence in the UK and “inevitable disruption to trade” arising from press coverage of the retailer’s restructuring activities caused like-for-like sales to plummet 10.5% in its fourth quarter.
Across the year, like-for-like sales dropped 3.6%.
However, the retailer said its refurbished stores continue to outperform the uninvested estate, “thereby giving us confidence to continue with the store modernisation strategy following the forthcoming equity capital fundraising”.
Boss Wilf Walsh said: “Having now received approval from both shareholders and creditors, we will press ahead with our plans for the proposed equity financing to recapitalise the business and enable Carpetright to address the competitive threat from a position of strength.”
Carpetright expects to report its final results for the 2018 financial year on June 26.
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