The flooring and bed company announced on Monday that administrators PwC had been appointed and had completed a sale of 54 stores and two logistics hubs to CWHP Ltd, part of the Tapi Group.
The transaction includes the transfer of 308 employees, but the company’s two sites here — in Belfast and Newtownabbey — have not been included in the list of stores making up the sale.
Founded in 1988, Carpetright has operated across the UK and Ireland, with its headquarters in Purfleet, Essex. Before the sale, it boasted 273 stores and 1,898 employees.
Challenging trading conditions — attributed to changing customer preferences and a drop in home improvement spending post-pandemic — have placed the company under pressure in recent years.
The business was also hit by a cyber attack in April 2024, which left it unable to trade for a period of time.
Under the terms of the deal, administrators will retain employees at the company’s head office for a short time to support winding down operations.
Some 1,108 individuals employed at sites not included in the transaction, as well as those providing in-home services, have been made redundant.
The company said the decision was taken “with deep regret”.
“The administrators are working closely with the Redundancy Payments Service to ensure that those affected receive their statutory entitlements as soon as possible,” said a spokesperson.
Administrators have been appointed to the company
“Tapi Group has shown a strong dedication to assisting affected Carpetright employees, by collaborating with other retailers to ensure their job applications receive priority and funding workshops aimed at improving employability skills. The administrators will assist in facilitating this.”
Zelf Hussain, joint administrator, said: “Carpetright has fallen victim to challenges facing many retailers, especially those selling big ticket items.
“A mixture of factors, including a big reduction in consumer spending due to cost of living pressures, lower home sales and a debilitating cyber attack made it impossible for the business to continue in its current form.
“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. We are committed to helping those affected and will make sure redundancy claims are processed as quickly as possible.
“In collaboration with Tapi, we will assist in efforts to help individuals find new jobs elsewhere.
“We know this is an uncertain time for many of those affected and want to thank all the staff for the support they have given the company in these difficult circumstances.”
Any outstanding orders placed with stores not included in the transaction are unable to be fulfilled, with customers affected being advised to contact their payment card provider about seeking a refund.
Information on outstanding orders from stores included in the transaction is available on the company’s website.