Floorcoverings retail chain Carpetright has confirmed that it plans to close its Storeys brand this year, with the exception of one store.

Effective from 1 September 2016, 26 Storeys Carpets outlets, predominantly based in the North East, will close with its Stockton-on-Tees branch the only survivor to remain open.

Carpetright said within its latest annual results ended 30 April 2016, that the chain has been struggling for a number of years due to ‘underinvestment and the fact it has been competing with a nearby Carpetright store’.

As part of its scheduled £10m major store overhaul project, which will see Carpetright refurbish 100 stores with its new branding, the move also reflects a new ‘Carpetright Clearance’ sub-brand, which will provide a budget option that will be sufficiently differentiated from the main estate, consisting of any stores that do not transfer to the Carpetright brand.

Carpetright also confirmed that its trial of its small high street concept store in Reigate had been a ‘huge success’, resulting in the opening of other similar stores, including in Bromley and Gerrards Cross, with the concept continuing to grow as the ‘lower rent high street format offers an exciting opportunity’.

During the year, Carpetright continued to downsize its store estate, closing 31 UK stores – opening six, as well as eight across Europe – opening eight, bringing its portfolio to 435 and 137 stores respectively.

Wilf Walsh, chief executive officer, commented: "We are embarking on a complete turnaround of the Carpetright business. We have not rushed into the changes, as we want to carry the majority of our staff with us and there is much to do.

“We need to ensure that we can execute the change successfully within our resource capacity and that we can carry out the customer promise effectively so that we become a recommended retailer more consistently.”