British carpet store chain Carpetright has moved 45 million euros worth of debt from banks to its major shareholder Meditor.
Stable long-term credit
Meditor has agreed to take upon itself the 40.7 million pounds of debt that the chain had at NatWest and IBG. The investment fund of poker player Talal Shakerchi did not demand a seat in the board of directors in return or structural policy changes, however it did ask for a say in how the chain is run. According to Carpetright, its shareholder has proven to mean it well because of this.
The move should allow Carpetright better access to stable and long-term credits, RetailGazette says. Last year, Meditor already granted the chain two short-term loans for a total of 27.5 million pounds, but still it had to declare itself insolvent and close eighty stores.
Carpetright now says it has succeeded in reducing its debt after the sale of two properties in Amsterdam. Its losses also shrank from 69.8 million to 24.8 million pounds (27 million euros), despite a 13.4 % reduction in turnover.