The move does not mean Carpetright has fallen into administration, filing a notice of intent to appoint an administrator is a move retailers can make to prevent the company from going bust
Carpetright has filed a notice to appoint administrators, putting more than 1,800 jobs at risk.
The company, which is one of the country’s biggest floor-covering retailers, has been struggling with a slump in sales and it recently appointed Teneo to explore cost-saving measures. The retailer blamed the financial pressure on the software attack which occurred in April, and left it unable to trade online and in-store for almost a week.
Carpetright said this disrupted plans to restructure and ultimately led to the company seeking a period of protection while sale negotiations proceed. Earlier this week, the high street floorings specialist drafted advisers at PricewaterhouseCoopers (PwC) to launch a formal sale process. Sources told The Times the sale was likely to be completed through a pre-pack deal or company voluntary arrangement.
The notice of intention to appoint administrators does not mean Carpetright has collapsed today. Filing a notice of intent to appoint an administrator is a move retailers can make to prevent the company from going bust. This means it could potentially be saved. During this time, Carpetright will continue to trade as normal. PwC has been lined up, but not yet appointed, to be the administrators.
Carpetright currently has 272 stores and employs 1,852 people in the UK. The update today comes after the business revealed it was looking to axe more than 25% of its head office staff, putting around 70 jobs at risk. The job cuts were across IT, warehousing and distribution with the retailer saying the move would reduce costs by around £22million.
Kevin Barrett, CEO of Nestware Holdings, which owns Carpetright and several other retailers, said: “We remain focussed 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.” PwC declined to comment.