United Carpets Group has relisted its shares after a controversial pre-pack administration in which the company acquired its assets back from the administrators.
A suspension on the carpet specialist’s shares on AIM has been lifted as the company’s annual audited accounts have been published.
In October, the retailer’s management put the firm into administration before buying back its 72 stores, two warehouses in Doncaster and Derbyshire and most of its assets from administrator Begbies Traynor.
The company said that without rent reductions it would have been forced to close a number of stores after it realised its model was propping up a number of franchised stores, the Yorkshire Post reported.
United Carpets chairman Peter Cowgill said: “The board believes that as a result of the actions taken since June 2012, the group is in a better position to tackle what remains a very challenging marketplace.”
The retailer said it now has “more favourable terms” with landlords including lower rents, break clauses and shorter lease periods.
The retailer reported pre-tax losses of £2.6m for the 18-month period to October 2012, including £3m of exceptional items. Like-for-like sales fell 1%, dragged down by a 13.7% fall in bed sales while flooring rose 0.2%.
Chief executive Paul Eyre said snow, competition, low marketing levels and negative perceptions following its administration had made conditions since year end “very challenging”.
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