Carpetright rescued by Tapi Group although the majority of stores will close
The majority of Carpetright stores are to close with more 1,000 workers losing their jobs following the announcement that rival Tapi Carpets & Floors has acquired parts of the business out of administration.
Administrators from PwC have completed a sale of 54 stores and two logistics hubs to CWHP, part of the Tapi Group. The transaction also included the transfer of 308 employees.
While the administrators will retain employees at Carpetright’s head office in Purfleet for a short time to support in winding down operations, 1,018 people employed at sites not included in the transaction, and those providing in-home services, have have immediately been made redundant.
Factors leading to Carpetright’s demise
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.”
Founded in 1988 and latterly a subsidiary of Nestware Holdings, Carpetright operated 273 stores and had 1,898 employees in the UK and Ireland.
Tapi was established in 2015 by Martin Harris, the son of Carpetright founder Lord Harris of Peckham.
The administrators said the transaction was the best option available to generate returns for creditors as a whole. A separate agreement was reached between Nestware Holdings and Tapi Group for the company’s intellectual property and brand.
Jeevan Karir, managing director of Tapi, said the company had originally wanted to save the whole Carpetright business but soon discovered that it was “unviable” and had been “materially lossmaking” for a number of years.
News emerged more than a week ago that Carpetright had filed a notice of intention to appoint administrators.
Yesterday, Kevin Barrett, chief executive of Nestware Holdings, 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.
Full list of sites included in the Tapi Group transaction
Basildon, Birmingham – Erdington, Bishopbriggs, Bristol – Longwell Green, Camborne, Camden, Carmarthen, Cheadle, Chesterfield, Chichester, Chippenham, Clapham Common, Coventry – Airport Retail Park, Cramlington, Croydon, Dumbarton, Dumfries, East Sheen, Edinburgh – Hermiston Gait, Epsom, Farnborough, Friern Barnet, Haywards Heath, Hemel Hempstead, Hereford, High Wycombe – Loudwater, Holloway, Hove, Ipswich – Anglia Park, Lancaster,
Leeds – Kirkstall, Maidstone, Mansfield, New Malden, Newbury, Newmarket, North Shields, Norwich – Sprowston, Peterborough, Plymouth – Marsh Mills, Southampton – Hedge End, Stockton, Swindon – Bridgemead, Teddington, Trowbridge, Truro, Washington – Armstrong, West Wickham, Weston-Super-Mare, Weymouth, Whetstone, Wimbledon, Woking, Yeovil, Chessington Warehouse, Croydon Warehouse
