Carpetright, a leading retailer in the flooring industry, has secured its future through a limited rescue deal. However, as a result, approximately 1,000 staff members have been made redundant. The deal, known as a “pre-pack administration,” allows a buyer to select specific assets to purchase. In this case, rival floorings retailer Tapi has confirmed its purchase of 54 out of Carpetright’s 272 stores and two warehouses. This has resulted in only 308 staff being retained.
The sale also included the brand and intellectual property rights of Carpetright, which were purchased by Nestware Holdings Ltd. and Tapi Group, respectively. This news comes after it was reported over a week ago that the retailer was on the brink of administration. Tapi Group was founded in 2015 by Lord Harris of Peckham, who also founded Carpetright, but sold his shares in the store in 2014.
In a statement, it was announced with “deep regret” that 1,018 employees at non-purchased sites and those providing in-home services have been made redundant. Zelf Hussain, joint administrator, stated that Carpetright has faced challenges similar to many retailers, especially those selling big ticket items. He attributed these challenges to a decrease in consumer spending, lower home sales, and a cyber attack that greatly impacted the business.
Hussain also mentioned that the sale of some stores and the brand has allowed for the preservation of over 300 jobs and the opportunity for the store to “continue and flourish.” However, he expressed sadness for the remaining workforce and ensured that all efforts will be made to assist them in finding new jobs. Although the future of the remaining employees is uncertain, it is evident that the company is committed to supporting them during this difficult time.
Founded in 1988 and based in Purfleet, Essex, Carpetright had a total of 273 stores and 1,898 employees. It is unclear what will happen to the roles of the remaining employees. Customers who have placed orders with non-purchased stores have been advised that their orders cannot be fulfilled and to contact their payment card provider for a possible refund.
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Kevin Barrett, chief executive of Carpetright’s parent company Nestware Holdings, released a separate statement expressing his disappointment in being unable to save more jobs. He stated that their focus over the past week has been to secure external investment to ensure job security for their colleagues throughout the country. While they were successful in finding a buyer, the deal only covers a limited number of stores and will unfortunately result in job losses.
Tapi, which currently operates about 175 shops across the UK, will be acquiring the following stores as part of the deal: 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, and Yeovil, as well as the Chessington and Croydon warehouses.
