The independent committee of the board of Carpetright has received a revised non-binding proposal from a consortium headed by Lord Harris and other members of the senior management team. The cash offer of 1,250p per share is subject to due diligence and board recommendation.
The development came as Carpetright reported group sales up 10.3 per cent in its first-half trading update for the 23 weeks to October 6, 2007.
The UK and Ireland business, including Storeys, recorded a sales increase of 9.8 per cent. Like-for-like sales (excluding Storeys), decreased by 0.8 per cent. Total sales in rest of Europe rose 13.8 per cent and like-for-like sales climbed 8.1 per cent.
In the UK and Ireland, 21 stores have opened and 17 stores closed, taking the count to 546 including 32 Storeys. Carpetright has continued to reduce its cost base and sublet space in more than 50 stores to Sleepright, a start-up bed retail format.
Lord Harris of Peckham said: “Trading conditions in the UK and Ireland remain uncertain, but we are continuing to offer our customers outstanding value through strong promotions and we will continue to cut costs where possible, relocate to smaller stores where appropriate and focus on cash generation.”
Carpetright maintained Lord Harris’ proposal is not a firm intention to make an offer and there is no certainty even if pre-conditions are satisfied.