Bensons for Beds acquires 19 Carpetright stores amid retail turmoil
Bensons for Beds has announced the acquisition of 19 former Carpetright locations.
This strategic expansion aims to bolster Bensons’ presence and capitalise on opportunities left in the wake of Carpetright’s recent collapse.
Nick Collard, CEO of Bensons for Beds, expressed enthusiasm about the acquisition, stating, “Increasing the number of Bensons stores remains a key growth priority and we are excited about this opportunity to take on 19 store units. Today’s announcement supports our overall plan to expand our current 162 strong store estate to over 200 over the next few years.”
Bensons for Beds intends to begin trading in these new locations within the next few months.
This initiative is expected to create new job opportunities, potentially benefiting former Carpetright employees who faced uncertainty following the retailer’s administration. The newly acquired stores are spread across the UK, including cities such as Aberdeen, Belfast, Portsmouth, and Slough.
Collard added, “Whilst market conditions for higher ticket purchases have remained very challenging, Bensons has continued to make real progress, by remaining focused on those things in our control. Since our return to profitability in 2023, we’ve continued to see significant market share gains across all our core categories.”
The announcement comes as Carpetright struggles under the weight of nearly £345 million in debts. The administration process, overseen by PricewaterhouseCoopers (PwC), revealed that more than half of this debt is owed to customers, suppliers, landlords, and other unsecured creditors. These groups are unlikely to see substantial repayments, with estimates suggesting no more than £600,000 will be distributed among them. High-profile creditors include Microsoft and carpet suppliers Condor and Betap, who are owed a combined £213 million.
The UK tax authorities and employees are also among those owed, with the government expected to reclaim £9.2 million and staff due at least £2.2 million. However, the future of Nestware Holdings, the owner of Carpetright, remains uncertain. Nestware, itself owned by Meditor and headed by hedge fund manager Talal Shakerchi, is owed £120 million, though the administrators have yet to determine how much of this will be recovered.
The demise of Carpetright, which resulted in over 1,500 job losses, underscores the broader challenges faced by retailers specialising in high-cost homewares. A recent report from the DIY retailer Wickes highlighted a 4% fall in underlying sales for the six months to 29 June, driven by an 18.3% decrease in sales of kitchen and bathroom design and installation services. This trend reflects a “continued soft consumer appetite for larger-ticket purchases” as households grapple with high energy bills and rising interest rates.
While the retail sector navigates these turbulent waters, Bensons for Beds’ strategic acquisition signals a proactive approach to growth and market adaptation. As the company integrates these new locations, the hope is that it will not only strengthen its market position but also provide stability and new opportunities for those affected by Carpetright’s downfall.
