Carpetright has formally agreed terms to sell the company to their largest shareholder Meditor for £15.2m, shareholders will receive just 5p a share.
Bob Ivell, chairman of Carpetright said, “We believe the 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.”
The poker playing hedge funder Talal Shakerchi of Meditor said, “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.”
Shareholders now have to vote to accept the deal.