Carpetright’s future has been partly secured through a rescue deal, but this move has resulted in the loss of more than 1,000 jobs.
Rival flooring retailer Tapi has bought 54 of Carpetright’s 272 stores and two warehouses through a pre-pack administration, which allows for the selective acquisition of assets. This transaction has retained 308 employees.
In a separate agreement, the Carpetright brand and intellectual property rights have been sold by Nestware Holdings Ltd to Tapi Group. The retailer had been teetering on the brink of administration for over a week before the deal was completed.
Founded in 2015 by Lord Harris of Peckham, who also founded Carpetright before selling his shares in 2014, Tapi expressed its “deep regret” that 1,018 employees from unincorporated sites and those providing home services were made redundant immediately after the deal was announced .
Self Hussain, co-director, explained the factors behind Carpetright’s struggle: “A combination of factors, including a large drop in consumer spending due to cost of living pressures, lower home sales and a debilitating cyber attack, made it company impossible to continue in its current form.”
While the sale of selected stores and the brand has saved more than 300 jobs, Mr Hussain acknowledged the sadness over the layoffs and pledged to process redundancy applications quickly and help affected individuals find new work.
Kevin Barrett, CEO of Nestware Holdings, Carpetright’s parent company, said: “Our focus over the past week has been on securing external investment to ensure job security for some of our Carpetright colleagues across the country. Although we have been successful in finding a buyer, the deal is limited to a select number of stores and not to the company as a whole, impacting a large number of colleagues.”
Customers with orders placed at stores not included in the transaction are advised to contact their payment card provider for possible refunds.
Founded in 1988 and headquartered in Purfleet, Essex, Carpetright operated 273 stores and employed 1,898 staff. The fate of the remaining employees is currently uncertain.
Tapi, which currently operates approximately 175 stores in 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 corridor
– Epsom
– Farnborough
– Friern Barnet
– Haywards Heath
– Hemel Hempstead
– Hereford
– High Wycombe – Loudwater
– Holloway
– Hove
– Ipswich – Anglia Park
– Lancaster
– Leeds – Kirkstall
– Virgo Stone
– Mansfield
– New Malden
– Newbury
– New market
– North Shields
– Norwich – Sprowston
– Peterborough
– Plymouth – Swamp Mills
– Southampton – Hedge End
– Stockton
– Swindon – Bridgemead
– Teddington
– Trowbridge
– Truro
– Washington – Armstrong
– West Wickham
– Weston-Super-Mare
– Weymouth
– Whetstone
– Wimbledon
– Waking
– Yeovil
– Chessington warehouse
– Croydon warehouse