SHARES in one of the UK's largest carpet retailers plunged on Monday (March 19) amid fears about its future.

Shares in Carpetright, which has a store in the Blackpole Retail Park in Worcester and a store in Evesham, dropped by 14 per cent after a report suggested the carpet retailer may cut jobs and close stores to stop it going into administration.

It is understood the group could go down the route of a company voluntary arrangement (CVA), which would allow to it to shut loss-making stores and secure deep discounts on rental costs.

Carpetright, which has 409 stores in the UK, said it was exploring "a range of options" to reboot the business and a final decision had not been made.

The prospect of a CVA - first reported by the Sunday Telegraph - sent shares tumbling in morning trading on the London Stock Exchange.

Shares in Mothercare, which is closing stores to cut costs and stay afloat, dropped by 12 per cent on Monday (March 19).

The baby clothing retailer, which has a store in the Crowngate Shopping Centre in Worcester, plans to cut its store numbers from 140 to 80.

In the US, Claire's Accessories has filed for bankruptcy protection in a bid to bring down its debt by $1.9bn (£1.4bn).

However, the jewellery and hair accessory retailer, which also has a store in the city’s Crowngate Shopping Centre, does not expect the restructuring to affect its stores and operations in the UK.

Carpetright would be joining the likes of fashion retailer New Look and restaurant chains Byron, Prezzo and Jamie's Italian, which have all embarked on CVAs since the start of the year.

A spokesman for Carpetright said: "As announced on March 1 we are examining a range of options to accelerate the turnaround of the business and strengthen its balance sheet.

"This process is ongoing and the group will update the market on these initiatives as required."

It would be further gloomy news for the high street following the collapse of Toys R Us and Maplin.