Topps Tiles suffered a 13.1 per cent drop in like-for-like sales over the past two months. However, the tile retailer said it had successfully renegotiated its current loan facility and a relaxation of both covenants associated with its debt as well as an extension to 2012.

Topps has been struggling to meet strict covenants as it deals with a slowdown in the home improvement market. The retailer leveraged itself aggressively to finance a share buy-back programme two years ago.