Carpetright, one of the largest carpet retailers in Britain, has announced plans to cut more than 25% of its head office staff in response to a prolonged downturn in trading. The company, which operates over 285 stores and concessions in the UK and 120 outlets in Belgium, Ireland, and the Netherlands, will be reducing its cost base by approximately £22m through this cost-cutting measure.
According to sources, the privately owned company informed its employees on Tuesday morning that around 70 jobs will be eliminated at its base in Purfleet, Essex. However, there will be no impact on store numbers or headcount in its shops. The redundancies, which will primarily affect roles in areas such as IT and warehousing, are part of a larger restructuring effort.
The decision to downsize comes after Carpetright reported significant losses in the past two years. The company, founded by Lord Harris of Peckham, has faced challenges due to weaker consumer spending and competition from other chains such as Tapi – previously run by Lord Harris’s son.
In a statement issued to the media, Kevin Barrett, chief executive of Nestware Holdings (Carpetright’s parent company), stated, “While we have worked tirelessly to navigate our current challenges, we understand the impact this restructure will have on valued members of our team. Our top priority remains supporting those affected through this process.”
He further explained, “As with many businesses, we face ongoing challenges in today’s tough economic climate. We’ve carefully examined our performance against operating costs, leading us to make difficult decisions to ensure the future success of our brand.”
Carpetright has sought advice from Teneo on its cost-cutting options. The company’s focus remains on sustaining its brand and supporting its employees through this process.
