Carpetright (LON:CPR) has announced plans to raise net proceeds of £60 million via a placing of new shares. Roughly a third of these funds will be used to cover the costs of its company voluntary arrangement and repay outstanding short-term debts while the remainder will satisfy the capital expenditure requirements of the firm’s Revised Business Plan. The shares in question have all been provisionally placed, but the distribution may change based on an open offer for current shareholders.
CEO Wilf Walsh commented, “As well as funding implementation of the CVA to create a right-sized estate of stores on sustainable rents, it will provide the necessary capital to refurbish and modernise the ongoing store estate and to upgrade our digital platform – both vital investments in our future. We believe that a recapitalised market leader will ultimately be better for customers, suppliers, landlords and shareholders”.
Shares in Carpetright had climbed 24.51% to 36.40p at 15:30 BST.