Carpetright’s future was partly secured through the rescue deal, but the move resulted in the loss of more than 1,000 jobs.
Tapi, a rival flooring retailer, bought 54 of Carpetright’s 272 stores and two warehouses through a pre-pack administration, which allows for selective acquisition of assets. The deal retained 308 employees.
In a separate agreement, the Carpetright brand and intellectual property rights were sold to Tapi Group by Nestware Holdings Ltd. The retailer had been teetering on the brink of administration for more than a week before the deal was finalized.
The company was founded in 2015 by Lord Harris of Peckham, who also founded Carpetright before selling his shares in 2014. Tabby said it was “deeply sorry” that 1,018 staff from unlisted sites and those providing home services were made redundant immediately after the deal was announced.
“A combination of factors, including a significant decline in consumer spending due to cost of living pressures, a decline in home sales and a debilitating cyber attack, made it impossible for the company to continue in its current form,” explained Zelaf Hussain, joint director, explaining the factors behind Carpetright’s difficulties.
While the sale of select stores and the brand has preserved more than 300 jobs, Mr. Hussain acknowledged the sadness over the layoffs and pledged to process redundancy claims quickly and help affected individuals find new work.
“We have been focused over the past week on securing external investment to ensure job security for a number of our Carpetright colleagues across the country,” said Kevin Barrett, CEO of Nestware Holdings, Carpetright’s parent company. “While we have been successful in finding a buyer, the transaction is limited to a select number of stores rather than the business as a whole, impacting a significant number of colleagues.”
Customers with orders at stores not included in the transaction are advised to contact their payment card providers for a possible refund.
Founded in 1988 and headquartered in Purfleet, Essex, Carpetright operates 273 stores and employs 1,898 staff. The fate of the remaining staff is currently uncertain.
Tapi, which currently operates around 175 stores across the UK, has confirmed the acquisition of the following Carpetright sites:
– Basildon
– Birmingham – Erdington
– Bishop Briggs
– Bristol – Longwell Green
– Camborne
– Camden
– Carmarthen
– Cheadle
– Source field
– Chichester
-Chippenham
– Clapham Common
– Coventry – Airport Retail Park
– Carmelington
– Croydon
– Dumbarton
– Dumfries
– East Shen
– Edinburgh – Hermiston Gate
– Epsom
– Farnborough
-Ferrin Barnett
– Haywards Heath
– Hemel Hempstead
– Hereford
– High Wycombe – Loudwater
– Holloway
– Hoff
– Ipswich – Anglia Park
– Lancaster
– Leeds – Kirkstall
– Maidstone
-Mansfield
– New Malden
– Newberry
– New market
– North Shields
– Norwich – Sprowston
– Peterborough
– Plymouth – Marsh Mills
– Southampton – Hedge End
-Stockton
– Swindon – Bridgemead
– Teddington
-Troberg
-Tru
– Washington – Armstrong
– West Wickham
– Weston Super Mare
– Weymouth
– whetstone
– Wimbledon
-Woking
-Yovel
– Chessington Warehouse
– Croydon Warehouse