Struggling British carpet and flooring retailer Carpetright has been acquired by its largest shareholder, Meditor.
The deal has been discussed between the two firms over the last month, and today Carpetright accepted an offer of 5p a share, which equates to a value of £15.2m.
Carpetright currently has debts of more than £56m, and last month revealed that the company needs £80m to pay off its remaining debts and have enough funds to grow the business.
Commenting on the acquisition, Bob Ivell, Chairman of Carpetright, said: “We believe the MHL offer is in the best interests of all stakeholders. While we have made significant progress with our recovery plan for the Carpetright Group, our ability to invest in the future of the business has been constrained against the backdrop of limiting banking covenants and a very challenging consumer market.
“With a recapitalised business and the backing of a committed new owner with the resources to invest in Carpetright for the long term, we will be able to complete our recovery in the private arena and emerge as a stronger business.”
Talal Shakerchi, Director of MHL, said: “I believe this Scheme represents the best outcome for all stakeholder groups. In particular, with Meditor’s support and financial backing and without the constraints of a public market listing, Carpetright will be well-positioned to compete more effectively. This will facilitate substantially increased investment in Carpetright’s committed employees and its store estate as well as driving new initiatives and improvements. I am excited about the long term prospects and opportunities for the Carpetright business.”