Carpetright secures £60m equity raise for CVA

Carpetright CVA

Carpetright has secured the £60 million lifeline it needed to raise through a share issue to prevent it from going under.

It comes after the embattled retailer last month launched an emergency fundraising drive to support its company voluntary arrangement (CVA) and restructuring costs.

It had proposed an issue of 232.5 million new shares through a placing and open offer at a price of 28 pence per share.

The open offer ended at close of business yesterday, and Carpetright said 92.1 per cent subscribed.

The balance of available stock will be taken up in the placing.

Carpetright shareholders and creditors approved the retailer’s CVA in April, which includes 92 store closures and up to 300 job losses amid a restructuring plan.

In May, the retailer obtained a £15 million shareholder loan, which will also support the CVA.

Carpetright shares closed yesterday at 35 pence, valuing the retailer at £106 million.

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