Shares are suspended at crisis-hit carpet company

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United Carpets has asked for its shares to be suspended while it continues to review the future of its 85 stores.

The Mexborough-based flooring and bed retailer has closed six stores and is planning to close a further eight over the next few weeks.

Seventeen of its franchised stores have either been taken back into the group or are being refranchised.

United is also in negotiations with landlords of a number of other stores in a bid to agree rent reductions that would improve trading prospects and viability.

The AIM-listed company says in a Stock Exchange statement: “The outcome of the ongoing negotiations with landlords is uncertain as is the possibility of further closures.

“Depending upon the outcome of the ongoing negotiations and considerations, further, potentially substantial, non-cash provisions may also be required.”

United asked for its shares to be suspended as it wishes to change the date when it publishes its accounts.

It says publishing accounts for the year to the end of March would not reflect the full financial implications of its current review and the actions which might still need to be taken, so it is extending its current financial year by six months to the end of September and says it intends to publish its accounts for the 18 month period before the end of January next year.