Troubled Rotherham carpet firm set to axe 14 stores

Directors at Bramley-based United Carpets, which has outlets in Mexborough and Parkgate, have already launched a review into the group’s 85 stores.

Six stores have been earmarked for closure and a further eight stores are expected to close over the next few weeks.

A statement on the firm’s website said: “Following a prolonged period of tough market conditions, a significant proportion of the company’s franchise network has found trading very challenging, resulting in a situation which has become increasingly unsatisfactory.

“Negotiations have commenced with the landlords of a number of other stores in an attempt to agree rent reductions in order to improve trading prospects and viability.

“The outcome of the ongoing negotiations with landlords is uncertain as is the possibility of further closures.

“It may be that more closures than the 14 that have occurred or are already anticipated may be necessary.”

The company’s decision to suspend its shares came as a result of the board not being in a position to publish its 2011/2012 year end financial results by September 30.

Instead it will extend its accounting date by six months, to cover an 18-month trading period, and will publish the figures in January to allow time to complete the review and provide shareholders with a full report on the situation.

A company spokesman said: “The board believes that not taking this step would result in a set of accounts which would not give a truly representative picture of the ongoing operations.

“While the board is disappointed by the need to take these actions, the directors continue to believe that, with appropriately adjusted central costs, the core of locations that will continue following the completion of the review will be able to operate successfully on an ongoing basis.”

Once the latest accounts are published, it is hoped that trading in the company’s shares will be re-opened.

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