The flooring retailer filed a notice of intention to appoint PwC as an administrator at the High Court on Friday, as first reported by The Times.
According to the report, administrators are in talks with The Floor Room, which is owned by Nestware Holdings via Meditor – the British hedge fund led by Carpetright owner and poker player Talal Shakerchi.
B&Q and Screwfix owner Kingfisher has also been approached as well as several investment firms including Alteri, Hilco and Gordon Brothers.
Tapi Carpets, Carpetright’s closest competitor that was also created by the Harris family who founded Carpetright, has not been approached.
It is understood Carpetright was concerned that approaching Tapi would grant the business access to sensitive information and there were fears that any deal would be slowed by the need to go through competition clearance.
No formal bids have been made for the business yet.
Carpetright chief executive Kevin Barrett told staff via a voice note the company would no longer be accepting customer refunds, which could cause a “lot of disruption and customers getting nervous”.
He said the team was “focused on securing external investment to ensure as few customers and colleagues are impacted as possible”.
“They are our main priority and we are taking all appropriate action to make sure they are informed and supported through this process. We have begun promising conversations with interested parties that are moving in the right direction, encouraging us that Carpetright has a viable future,” he added.