// Carpetright chair steps down after company goes private
// Shares in the company are suspended following the takeover by Meditor Fund
Carpetright has revealed the resignation of its chair Bob Ivell as the retailer returned to private ownership after 26 years.
The court-approved scheme of arrangement, which saw lender Meditor Fund take full control of the retailer, came into effect today and saw Ivell depart as a result of the takeover.
In November, Carpetright agreed to a takeover offer from Meditor, which valued the floor coverings retailer at about £15.2 million, or 5.00 pence per share.
A total of 80 per cent shareholders voted in favour of the resolution to approve the offer at a meeting last week.
Carpetright shares were last quoted at 5.04p each.
Shares in the company are now suspended, and will be cancelled effective today.
A bundle of non-executive directors also stepped down from Carpetright’s board as a result of the takeover, including Jemima Bird, Pauline Best and David Clifford.
Back in October, reports circulated that Meditor had offered to buy the retailer to avoid it collapsing due to debt.
Carpetright’s net debt was set to increase to between £40 million and £50 million in December, with Carpetright stating it needed £80 million to fund its turnaround strategy.
Ivell had initially backed the Meditor bid at the time.
“We believe the Meditor offer is in the best interests of all stakeholders,” he said.
“While we have made significant progress with our recovery plan for the Carpetright group, our ability to invest in the future of the business has been constrained against the backdrop of limiting banking covenants and a very challenging consumer market.
“With a recapitalised business and the backing of a committed new owner with the resources to invest in Carpetright for the long term, we will be able to complete our recovery in the private arena and emerge as a stronger business.”