High Street

Carpetright debt absorbed by shareholder

Carpetright shareholder Meditor is set to absorb the retailer’s £40.7m revolving credit facility, purchasing it from lenders Natwest and Ulster Bank.

The private investment company controlled by former Old Mutual fund manager Talal Shakerchi said it plans to engage with Carpetright to provide “longer-term, stable funding”.

Meditor has said it will not seek a place on the retailers board, nor will it “request structural changes in the business”.

A statement from Carpetright said: “Meditor has confirmed it now intends to engage with the company with a view to providing a more stable and longer-term funding platform.”

The news comes after the retailer had company voluntary arrangements (CVAs) approved last year, which allowed 80 stores to close.

Earlier this year, Carpetright revealed sales had decreased 13.4% year-on-year to £386.4m.

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