Tapi Carpets Rescues some stores from Carpetright

Update. 22nd July 2024

Carpetright has been rescued in part by its rival Tapi Carpets.  The company will keep 54 stores but 200 are still at risk. The deal will also result in 1,018 job losses across Carpetright’s Purfleet head office and its remaining 218 UK wide stores.

PwC administrators who are handling this administration, said that some HQ employees will be retained for a short period to help in the winding down procedure.

Retail Gazette share more.

Flooring specialist, Carpetright, has confirmed it has filed a notice of intention to appoint administrators.

This notice allows breathing space of ten days, whilst a rescue line is sought. If no rescue is found in the period, insolvency is likely.

This comes as the flooring retailer faces trading difficulty with increased competition and a fall in demand.

Expected outcomes, should a rescue deal be made, are a pre-pack deal or a company voluntary arrangement. These options would potentially leave customers, suppliers, subcontractors and landlords out of pocket,  result in store closures and leave 1,852 jobs at risk.

The firm are however working towards a reprieve – hoping to secure additional funding to see them out of the red.

This is not the first time Carpetright has hit the news for trading difficulty. Recent events:

• Teneo were appointed in April to explore cost-saving measures for the loss-making chain
• In April there was a financial strain placed on Carpetright when a cyberattack left it unable to trade online and in-store for almost a week
• In June it was reported that the retailer were looking to axe more than 25% of its head office staff as it looked to streamline operations

Carpetright has 272 UK stores and employs over 3,000 staff.