Carpetright’s future secured but at least 1,000 jobs lost in limited rescue deal

Carpetright’s future has been partially secured through a rescue deal, but the move has resulted in the loss of over 1,000 jobs.

Rival flooring retailer Tapi has purchased 54 out of 272 Carpetright stores and two warehouses through a pre-pack administration, which allows the selective acquisition of assets. This transaction has retained 308 staff members.

In a separate agreement, the brand and Carpetright’s intellectual property rights have been sold to Tapi Group by Nestware Holdings Ltd. The retailer had been teetering on the edge of administration for over a week before the deal was finalised.

Founded in 2015 by Lord Harris of Peckham, who also established Carpetright before selling his shares in 2014, Tapi expressed “deep regret” that 1,018 employees from non-included sites and those providing in-home services were made redundant immediately upon the deal’s announcement.

Zelf Hussain, joint administrator, explained the factors behind Carpetright’s struggles: “A mixture of factors, including a big reduction in consumer spending due to cost of living pressures, lower home sales, and a debilitating cyber attack, made it impossible for the business to continue in its current form.”

While the sale of select stores and the brand has preserved over 300 jobs, Mr Hussain acknowledged the sorrow over the redundancies and committed to processing redundancy claims swiftly and assisting affected individuals in finding new employment.

Kevin Barrett, CEO of Carpetright’s parent company, Nestware Holdings, said: “Our focus over the last week has been to secure external investment to ensure job security for a number of our Carpetright colleagues across the country. While we succeeded in finding a buyer, the deal is limited to a select number of stores rather than the business as a whole, impacting a large number of colleagues.”

Customers with orders placed at stores not included in the transaction have been advised to contact their payment card providers for potential refunds.

Founded in 1988 and headquartered in Purfleet, Essex, Carpetright operated 273 stores and employed 1,898 staff members. The fate of the remaining employees is currently uncertain.

Tapi, which currently operates around 175 stores across the UK, has confirmed the acquisition of the following Carpetright locations:

– Basildon
– Birmingham – Erdington
– Bishopbriggs
– Bristol – Longwell Green
– Camborne
– Camden
– Carmarthen
– Cheadle
– Chesterfield
– Chichester
– Chippenham
– Clapham Common
– Coventry – Airport Retail Park
– Cramlington
– Croydon
– Dumbarton
– Dumfries
– East Sheen
– Edinburgh – Hermiston Gait
– Epsom
– Farnborough
– Friern Barnet
– Haywards Heath
– Hemel Hempstead
– Hereford
– High Wycombe – Loudwater
– Holloway
– Hove
– Ipswich – Anglia Park
– Lancaster
– Leeds – Kirkstall
– Maidstone
– Mansfield
– New Malden
– Newbury
– Newmarket
– North Shields
– Norwich – Sprowston
– Peterborough
– Plymouth – Marsh Mills
– Southampton – Hedge End
– Stockton
– Swindon – Bridgemead
– Teddington
– Trowbridge
– Truro
– Washington – Armstrong
– West Wickham
– Weston-Super-Mare
– Weymouth
– Whetstone
– Wimbledon
– Woking
– Yeovil
– Chessington Warehouse
– Croydon Warehouse

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Carpetright’s future secured but at least 1,000 jobs lost in limited rescue deal