Carpetright is preparing to pull the plug on 81 stores, putting 300 jobs at risk.
A majority of creditors approved the restructuring, which will also see Carpetright try to secure rent cuts of between 30 per cent and 50 per cent at 113 stores.
Once it completes a company voluntary agreement Carpetright will attempt to raise £60million from shareholders to get back on an even keel.
Carpetright is preparing to pull the plug on 81 stores putting 300 jobs at risk after a series of profit warnings wiped millions from its value
Carpetright employs 2,700 people at more than 400 stores across the UK.
It has too many stores and sales are falling as fewer people make major home improvements.
Millions of pounds were wiped off its value after it issued three profit warnings in just four months.
Wilf Walsh, chief executive of Carpetright, said reducing its store estate was ‘critical’ to securing a recovery of the business.
‘Receipt of creditor approval for the proposal will enable us to take tough but necessary action to establish a right-sized estate of stores on economic rents, which is essential to restoring our profitability,’ he said.