Carpetright shares drop further as potential CVA looms

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Carpetright

Carpetright has seen its share prices drop more than 10 per cent in morning trading amid speculation it could undergo a company voluntary agreement (CVA).

The flooring retailer revealed it was exploring a “range of options” in an effort to drag the business out of its current financial turmoil but added a final decision had not yet been made.

This follows a string of dismal results and profit warnings from the retailer, stating earlier this month in its second profit warning in as many months that it was in talks with lenders.

In January its share price dropped 47 per cent as it reported a 3.6 per cent drop in sales over the crucial Christmas period, after reported a further 93 per cent drop in profits a month prior.

“As announced on March 1 we are examining a range of options to accelerate the turnaround of the business and strengthen its balance sheet,” a spokesperson said.

“This process is ongoing and the group will update the market on these initiatives as required.”

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