Carpetright calls in advisers to cut costs as demand slows

Carpetright has appointed Teneo to look at multiple cost-saving options, which could lead to potential store closures, The Times has reported.

A Carpetright spokesperson said the retailer was “not planning” for a company voluntary agreement (CVA).

The spokesperson added that Carpetright had a “number of advisers looking at how we improve our performance, as we do in the normal course of business”.

Carpetright, which currently has more than 400 stores, has faced intense competition recently from rivals including Tapi, as well as battling a slowdown in consumer spending.

Carpetright posted revenues of £372.6m for the 14 months to January 1, 2022, down from £493.2m in the 18 months prior, to October 31, 2020.

According to its latest Companies House filing, underlying losses before tax for the period reached £23.4m, down from a previous loss of £53m.

The news comes after furniture giant DFS recently issued its second profit warning in six months and rival Wickes also reported that demand for big-ticket purchases had been “challenging” in the current home and DIY market.