Carpetright Surges as Losses Narrow

Flooring firm getting back on track after painful restructuring but experts warn some of the company's problems are "out of its hands".

James Gard 25 June, 2019 | 10:46AM

Carpetright

Carpetright (CPR) shares surged almost 12% as investors bought in to the struggling company’s turnaround story after an encouraging set of full-year results.

Shares in the troubled retailer plunged 89% last year after a series of profit warnings and widening financial losses. The firm entered a company voluntary arrangement (CVA) in 2018, which allowed it to continue trading while it paid off its creditors. CVAs are currently in vogue among retailers – companies such as Mothercare, Homebase and most recently Sir Philip Green’s Arcadia have taken the option of store closures and job losses as an alternative to bankruptcy.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aberforth Smaller Companies Ord822.00 GBP0.00
Carpetright PLC  
Investec UK Special Situations I Acc129.21 GBP-3.83
Investec UK Total Return R Acc83.52 GBP-3.89

About Author

James Gard  is content editor for Morningstar.co.uk

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