The board is confident of the financial sustainability of the company and that it continues to be a going concern, chairman Alan Clarke told the NZX.
It has the ongoing support of its bank.
Market conditions remain difficult but Cavalier is increasing sales of its high-end wool carpets, particularly the premium Cavalier Bremworth Collection, he said.
Sales of low-margin synthetic carpets are declining.
Cavalier is accelerating a strategic review to develop a new business model focused on wool and is in discussions with a potential partner and also with major retail customers.
