Carpetright: Rival Tapi rescues brand out of administration as 1,500 jobs lost

Carpetright has been rescued out of administration but more than 1,500 jobs have been lost, it has been confirmed.

The major carpet and tiling retailer, which is headquartered in Essex, has been snapped up by rival Tapi for an undisclosed sum.

The move will save the jobs of more than 300 people and 54 stores.

Carpetright ran around 270 stores across the UK and employed around 1,800 people.

Zelf Hussain, joint administrator at PwC, 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.” 

In its most recently filed set of accounts, for the 14 months to January 1, 2022, Carpetright reported a revenue of £372.6m, down from £493.2m in the prior 18 months, while its pre-tax loss was cut from £64.3m to £23.1m.

Its accounts for 2022 were due to be filed with Companies House by the end of 2023 but are late.

Carpertright launched a CVA back in 2018 which entailed 81 store closures, rent reductions and business restructuring in order to stay alive. 

Speaking earlier this month,

Rebecca Dacre, partner at Mazars, said: “We are unlikely to see the retail sector trading comfortably until interest rates start to fall.

“Despite inflationary pressures easing, high interest rates and low consumer spending continue to persist.

“The rise in the National Living Wage is the largest on record and some face a sharp rise in business rates from April.

“One of the issues that chains like Carpetright will face is who will want to rent their excess space.”