More than 1,500 staff at Carpetright are to lose their jobs despite a deal by rival flooring retailer Tapi to save some of its stores.
Tapi Carpets & Floors has bought the Carpetright brand name, the company’s intellectual property, two warehouses and 54 stores, saving 308 jobs.
However, the remainder of Carpetright’s staff were not included in the deal and will be made redundant either immediately or over the coming weeks.
Jeevan Karir, managing director of Tapi, said that initially it had wanted to save Carpetright in its entirety but it “quickly established” that doing so was “unviable”.
He said that while the deal would save more than 300 jobs, hundreds more workers at Carpetright’s head office in Purfleet, Essex, will only be kept on for a short time to wind down operations.
Carpetright employed more than 1,800 staff before entering into insolvency. It also had more than 250 shops across the country.
More than a week ago it emerged that Carpetright was close to collapse and was set to appoint PwC as an administrator while it scrambled to find extra funding.
In a statement on Monday, PwC said that administrators were working with affected employees to ensure they receive the payments they are entitled to as soon as possible.
Zelf Jussain, joint administrator at PwC, said acknowledged it was a “difficult time” for those affected.
“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,” he said.
“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.”
Tapi’s boss Mr Karir also said it was “desperately sad” not to have been able to save more of the business.
“However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable,” the company said.
Tapi said that it believed it was the only offer, however, that would have saved “a large number of roles” and the rescue would allow the business to expand into a number of different areas across the UK.
Kevin Barrett, chief executive of Carpetright’s parent firm Nestware Holdings, said its focus for the past week has been looking for extra investment to shore up jobs.
“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,” he said.
“We have tried everything to turn Carpetright around and I’m truly sorry that we were unable to save more jobs.”
He added that the deal would not affect Carpetright stores in Europe or other Nestware brands like Keswick and Trade Choice.
Previously Mr Barrett had said its plan to restructure the business was hit by a sales slump in April because of a cyber-attack.
Carpetright has also suffered because of slowing consumer demand.
Retailers trying to sell big-ticket items have faced a particularly tough time as customers focus on everyday essentials due to the ongoing effects of the cost-of-living crisis.
For customers who have placed orders with stores that have not been bought by Tapi, PwC recommends they contact their payment card provider about the possibility of a refund.
A full list of the shops included in the deal is available on the Carpetright website.
Carpetright was founded by Lord Philip Harris in 1988, with its first store opening in Canning Town in east London. It enjoyed years of success, listing on the London Stock Exchange in June 1993 before being delisted in 2020.
Previously dubbed the “King of carpets”, Lord Harris’s family would go on to join him in the homewares business with a number of them among the founders of Tapi which was set up 10 years ago.
Lord Harris continues to act as an adviser for Tapi.
Source Agencies
