Carpetright has called in advisers to help explore cost-saving measures as demand for the business slows and competition increases.
The leading UK flooring retailer is understood to have appointed Teneo to look at various options in a move that could result in store closures, The Times reports.
A spokeswoman for Carpetright told the title it is “not in planning” for another CVA – a type of insolvency procedure used to close unprofitable shops or negotiate on rents.
She said the company had a “number of advisers looking at how we improve our performance, as we do in the normal course of business”.
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In recent years the business has been hit with consumers spending less on big-ticket items.
It has also struggled in the wake of strong competition from rivals such as Tapi, which was started by Martin Harris, the son of Carpetright founder Lord Harris of Peckham, which has opened dozens of shops on its doorstep.
In the 14 months to January 1, 2022, the company posted revenues of £372.6m down from £493.2m in the prior 18 months to October 31, 2020.
While underlying losses before tax for the period amounted to £23.4m, marking an improvement from the previous loss of £53m, as per the latest accounts filed with Companies House.
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