Carpetright manages to grab £15m of emergency funding

Carpetright has managed to live another day this morning, as it agreed a deal with its shareholder Meditor to grab £15m of emergency funding.

The pricey unsecured loan will net Meditor a £2.25m fee, and 18 per cent interest. The hedge fund already lent £12.5m to Carpetright in March, scooping a £2m fee.

Carpetright also added that its plans to raise £60m from shareholders through an equity capital raising would still go ahead "on or around 18 May".

Read more: Carpetright agrees to pricey bridging loan as it reveals landlord restructuring plans

The trouble has kept coming for the flooring firm, since it announced in January that its profits would be "significantly" lower than expected due to pitiful consumer footfall.

It later added it was closing close to 100 stores through a company voluntary arrangement (CVA), aiming to tackle "legacy property issues" of poorly located stores on unsustainable rents.

Since January, more than 75 per cent has been wiped off the value of Carpetright's shares. The company has said it expects a loss of as much as £9m this year.

Read more: Carpetright shares drop as it warns on profits for the second time in two months

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