In a dramatic turn for the UK retail sector, Carpetright has been snapped up by its competitor Tapi in a rescue deal that will unfortunately see the closure of over 200 stores and the loss of more than 1,000 jobs. The flooring giant Tapi has secured the Carpetright brand, intellectual property, along with 54 stores and two warehouses through a pre-pack administration agreement.
PwC administrators have confirmed that this strategic acquisition will preserve over 308 jobs at Carpetright. Despite this silver lining, the bulk of the company, including its Purfleet, Essex headquarters, is set to close.
Plagued by diminished consumer interest and a significant cyber incident in April, Carpetright, under the ownership of Nestware Holdings, had already signalled distress earlier this month by moving to appoint administrators. Prior to the insolvency proceedings, the firm boasted a workforce of 1,852 and ran 273 stores throughout the UK.
While some staff at the head office will be kept on temporarily as the company winds down, the administrators have announced that 1,018 employees will be let go immediately due to their stores not being included in the Tapi deal.
Zel Hussain of PwC, serving as joint administrator, expressed: “The sale of some stores and the brand to Tapi has allowed over 300 jobs to be saved, and gives the Carpetright brand the chance to continue and flourish under its new ownership. However, it is deeply saddening that for the remainder of the workforce there will be redundancies.”, reports Wales Online.
Hussain added a note of commitment towards those impacted by the changes: “We are committed to helping those affected and will make sure redundancy claims are processed as quickly as possible.”
The administrators have announced that orders made at stores now set for closure “are unable to be fulfilled” and advised customers to contact their card provider in order to potentially secure a refund. Tapi, founded in 2015 by Lord Harris of Peckham, who also established Carpetright, has seen rapid growth in recent years with about 175 shops across the UK.
Jeevan Karir, managing director of Tapi Carpets and Floors, stated: “Our goal, initially, was to try to save all of Carpetright.”
“However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable.”
Mr Karir further added that Tapi was “mindful of how the competition authorities would look at any deal” when assessing how many stores it could save through a rescue deal. Nestware chief executive Kevin Barrett said: “Our focus over the last week has been to secure external investment to ensure job security for a number of our Carpetright colleagues up and down the country.”
“Whilst we succeeded in finding a buyer, the deal is limited to a select number of stores rather than the business as a whole and will sadly impact a large number of colleagues and staff. We have tried everything to turn Carpetright around and I’m truly sorry that we were unable to save more jobs.”
Carpetright has recently been hit by a slump in carpet demand as homeowners opt for hard flooring, coupled with a significant cyber attack in April that disrupted trading. The company stated earlier this month that the impact of the cyber attack on sales had hindered its restructuring efforts over recent months.
Here is the complete list of the 213 stores set to shut down in the coming days, as provided by PwC.
Note: Stores marked with ‘FV’ are located within Furniture Village stores.
Aberdeen.
Aberdeen Bridge Of Don.
Aberystwyth.
Abingdon.
Altrincham.
Andover.
Ashford.
Ashington.
Ashton-under-Lyne.
Aylesbury.
Ayr.
Banbury.
Barnstaple.
Barrow-in-Furness.
Bath.
Bedford.
Belfast Boucher Road.
Belfast Newtownabbey.
Berwick.
Blackburn.
Blackpool.
Blyth.
Bolton.
Bolton (FV).
Bracknell.
Braintree.
Brentford.
Bridgend.
Brighton.
Bristol Cribbs.
Bristol Eagleswood Hub.
Bromley.
Burton upon Trent.
Bury St Edmunds.
Caerphilly.
Cambridge.
Cannock Orbital.
Canterbury.
Cardiff Culverhouse Cross.
Cardiff Newport Road.
Carlisle.
Chadwell Heath.
Chelmsford.
Chelmsford (FV).
Cheltenham.
Chester.
Christchurch.
Colchester.
Colindale.
Coventry Alvis.
Crawley.
Crawley (FV).
Crewe.
Croydon (FV).
Cwmbran.
Dartford.
Derby.
Devizes.
Dorchester.
Dundee.
Dunfermline.
Dunstable.
Durham.
East Dereham.
East Grinstead.
East Kilbride.
Eastbourne.
Edinburgh Newcraighall.
Edinburgh Straiton.
Edmonton.
Elgin.
Enfield (FV).
Evesham.
Exeter.
Falkirk.
Fareham.
Farnham.
Feltham.
Frome.
Gateshead.
Gerrards Cross.
Gillingham.
Glasgow GWR.
Glastonbury.
Glenrothes.
Gravesend.
Guernsey.
Guildford (FV).
Guiseley.
Hanley.
Harlow.
Hartlepool.
Harwich.
Hastings.
Havant.
Haverfordwest.
Hazel Grove.
High Wycombe Bellfield Rd.
Horsham.
Hull Clough Road.
Hull St Andrews Quay.
Huntingdon.
Inverness.
Ipswich Euro.
Irvine.
Isle of Wight.
Jersey.
Keighley.
Kendal.
Kettering.
Kingston (FV).
Kirkcaldy.
Leeds Birstall (FV).
Leicester.
Letchworth.
Lincoln.
Liverpool Aintree.
Livingston.
Llandudno.
Llanidloes Hafren Furnishers.
London Beckton.
London Charlton.
London Ealing Common.
London Hammersmith.
London Old Kent Road.
London Staples Corner.
London Streatham.
London Walworth.
Lowestoft.
Manchester Trafford Park.
Manchester (FV).
Market Harborough.
Merthyr Tydfil.
Milton Keynes.
Newhaven.
Newport.
Newton Abbot.
Northallerton (within Barkers).
Northampton.
Northampton (FV).
Norwich Sweet Briar.
Nottingham Arnold.
Nottingham Castle Meadow.
Nuneaton.
Oldbury.
Orpington.
Oswestry.
Oxford.
Oxford 2.
Paisley.
Perth.
Poole Wessex Gate.
Portsmouth.
Preston.
Rayleigh.
Reading Reading Gate.
Redditch.
Reigate.
Rochdale.
Romford Gallows Corner.
Romford Rom Valley.
Rugby.
Salisbury.
Sevenoaks.
Sheffield Atkinsons Dept.
Sheffield Drakehouse.
Sheffield Meadowhall.
Shrewsbury.
Sittingbourne.
Slough.
Solihull.
South Ruislip.
Southampton Nursling.
Southend.
Staines.
Stamford.
Stevenage.
Stirling.
Stockton Storeys.
Sudbury.
Sutton.
Swansea Llansamlet.
Tamworth.
Taunton.
Telford (FV).
Thetford.
Tonbridge.
Torquay.
Tunbridge Wells.
Uddingston.
Wakefield.
Wallasey.
Walton-on-Thames.
Warrington Alban.
Warrington Pinners Brow.
Washington Hub.
Waterlooville.
Watford.
Wednesbury (FV).
Wellingborough.
Welwyn Garden City.
West Drayton.
West Thurrock.
Whitehaven.
Winchester.
Wisbech.
Wokingham.
Wolverhampton.
Worcester.
Worksop.
Wrexham.
York Clifton Moor.
York (FV).