Carpet retailer Carpetright has been sold in a pre-pack deal to flooring retailer Tapi, rescuing a number of stores and jobs.
Zelf Hussain, Rachael Wilkinson and Peter Dickens of PwC have been appointed as Joint Administrators of Carpetright Ltd. On appointment, the Joint Administrators 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.
Carpetright is a British retail chain selling carpets, flooring and beds and is a subsidiary of Nestware Holdings Ltd. Founded in 1988, the Company operates across the UK and the Republic of Ireland. Headquartered in Purfleet, Essex, it has 273 stores and 1,898 employees.
The Company has been hit by challenging trading conditions, predominantly due to changing consumer preferences and a drop in home improvement spending post-pandemic. The business was also impacted by a cyber attack in April 2024, which had left it unable to trade for a period of time.
This transaction represents the best option available to generate returns for creditors as a whole, under severely limited timescales. A separate agreement was reached between Nestware Holdings Ltd. and Tapi Group for the Company’s Intellectual Property (IP) and Brand.
The administrators will retain employees at the Company’s Head Office in Purfleet for a short time to support in winding down operations. “It is with deep regret that 1,018 individuals employed at sites which were not included in the transaction, and those providing in-home services, have had to be made redundant immediately on appointment,” a statement said.
“The administrators are working closely with the Redundancy Payments Service (RPS) to ensure that those affected receive their statutory entitlements as soon as possible. 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.
“For outstanding orders made through stores included in the sale, further guidance can be found on this website. Unfortunately, orders placed with stores not included in the transaction are unable to be fulfilled, and it is recommended that affected customers contact their payment card provider about the possibility of obtaining a refund.”
Zelf Hussain, Joint Administrator, added: “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.”
Kevin Barrett, CEO of Nestware Holdings, said in a statement: “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.
“We have tried everything to turn Carpetright around and I’m truly sorry that we were unable to save more jobs. The deal will not affect Carpetright in Europe or other brands within Nestware Holdings including Keswick and Trade Choice. The Floor Room will continue to trade and serve customers via concessions at John Lewis and we will be working hard to secure job opportunities across these businesses to support Carpetright staff wherever we can.”
The full list of sites included in the Tapi Group transaction are:
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.
The company’s operations in the Netherlands and Belgium are separate entities and are unaffected by insolvency proceedings.
Jeevan Karir, Managing Director of Tapi Carpets & Floors Limited added; “Our goal, initially, was to try to save all of Carpetright. However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable. The business has been
materially loss making for a number of years and it has significant debt held by the owner.
“We then turned ourselves to trying to save a number of stores whilst being mindful of how the Competition authorities would look at any deal. So, we arrived at 54 stores and 2 supporting warehouses. All of which are exceptional and that we’d be proud to have as part of the Tapi family.”
