Carpetright’s biggest investor, hedge fund Meditor Capital Management, has upped its stake in the retailer almost to the level that would oblige it to make a formal takeover offer.

Meditor, which last month provided Carpetright with a £12.5m unsecured loan in exchange for new shares to fund short-term working capital, has increased its holding from 16.47% to 29.99%, Reuters reported.

The stakebuilding came ahead of a meeting on Thursday at which Carpetright will seek creditor approval for a CVA that, if approved, will lead to 92 store closures as the embattled retailer seeks to safeguard its future.

As well as closing some branches, Carpetright aims to secure rent reductions at another 113 others. Up to 300 jobs could be lost.

If Thursday’s CVA proposal is approved, Carpetright aims to raise a further £60m through an equity issue to fund its turnaround.

Carpetright has suffered amid tough trading conditions for some big-ticket retailers.