The beleaguered retailer, which employs 2,700 people in the United Kingdom, did not reveal the number of locations facing the axe though it has been suggested that around 100 are likely to be affected.
British retailer Carpetright has agreed a loan with a shareholder in exchange for new shares to fund the short term running of the company, and may raise another 60 million pounds ($84 million) to try to turn its business around, it said on Wednesday.
It was the latest bleak update from the high street on a day which also saw a profit warning from menswear business Moss Bros and Kingfisher, the owner of B&Q, reporting deteriorating sales at the DIY chain.
Carpetright chief executive Wilf Walsh took a swipe at the firm's previous management over their store expansion strategy.
The group, which has a number of stores throughout Scotland, said it was "exploring" a company voluntary arrangement to help shore up its financial position, a move which would allow it to close loss-making shops and secure deep discounts on rental costs.
While the company has been closing stores in the years since, many are on long leases that make them hard to exit, he added.
It also plans to tap shareholders for £40m-£60m in an equity fundraise and has secured a £12.5m from one of its backers, asset manager Meditor, to fund its short-term working capital.
"The board is therefore exploring the feasibility of a CVA in order to expedite the rationalisation of its property portfolio, with the clear objective of establishing a right-sized estate of contemporary stores, on economic rents, complemented with a compelling online offer".