BOURNEMOUTH council will have to accept lower rent from troubled retailer Carpetright, months after spending £49million to buy the Mallard Road Retail Park.

But the authority has insisted that borrowing money to buy the park was a “sound investment”.

Carpetright won backing from creditors on Thursday for a company voluntary arrangement (CVA) to improve its finances.

The deal means the closure of 81 stores with the loss of around 300 jobs, as well as significant rent reductions on another 113 of its 409 branches.

All four local branches – including those at the Branksome, Christchurch and Wessex Gate retail parks – will stay open.

Bournemouth Borough Council initially issued a statement in which cabinet member Cllr Philip Broadhead said he was “pleased” that the Mallard Road Carpetright “continues to be profitable and under this restructure remains open for business”.

It added: “This demonstrates confidence in the success of the Mallard Road Retail Park and we hope that the CVA will put Carpetright in a sound financial position to ensure their long-term trading success.

“We remain confident that the Council’s investment at Mallard Road Retail Park provides a sound investment for the council. Since purchasing the site last September, the successful opening of Aldi has resulted in a significant increase in visitor numbers. This is driving rents upwards and has fuelled interest in the one empty unit, with multiple parties interested.”

Pushed on whether it would have to accept lower rent, the council conceded it would get less for next three years.

Its head of property, Gary Platt, said in a statement: “As landlord, the council has been monitoring Carpetright’s trading position and we have prepared our position accordingly. We voted in favour of the CVA, accepting that we will be receiving a reduced rent for the next three years whilst the company attempts to put itself on a sound financial footing.

“We hope that the Bournemouth store continues to be profitable and that Carpetright has a long-term future in the town. However, we have the benefit of a break notice in the first six months, so will continue to monitor Carpetright’s trading performance and will take further action should that prove necessary.

“We have amended our income generation expectations and the Mallard Road Retail Park investment continues to have a positive impact on the Medium Term Financial Plan.”

Last month, when news of the Mallard Road sale came to light, council leader John Beesley said the park was contributing around £600,000 in the medium term.

He added then: “This contribution is set to rise as rents increase and of course loan repayments remain fixed for the entire borrowing term.”