The sister company of retailer Carpetright, The Floor Room, has collapsed into administration and is being wound down.

Adam Seres, Zelf Hussain, and Peter Dickens of PwC have been appointed as Joint Administrators of The Floor Room Limited. The Company is a sister entity of Carpetright Limited, which was placed into administration on 22 July 2024.

The Company operates concessions in UK department stores, as well as one dedicated store in central London, selling carpets and flooring. It is a subsidiary of Nestware Holdings Ltd. The Company operates across the UK and has 201 employees.

The Company depended on Carpetright for a number of essential support services. It was impacted by both the cyber attack on Carpetright in April 2024 and the subsequent insolvency, which left it unable to trade using its existing business model. Despite the best efforts of all stakeholders to find a solution, the Company was left with no option but to appoint administrators.

The administrators will retain some employees at the Company’s head office in Purfleet for a short time to support in winding down operations. The Company’s financial position means it is not able to continue trading, and as a result, all concessions and its store in London will close immediately.

The remaining 196 employees, based across head office and retail sites, and those providing in-home services, were made redundant immediately on appointment. The administrators are working closely with the Redundancy Payments Service to ensure that those affected receive their statutory entitlements as soon as possible.

Furthermore, outstanding orders are unable to be fulfilled, and it is recommended that affected customers contact their payment card provider about the possibility of obtaining a refund.

Adam Seres, Joint Administrator at PwC UK, said: “The Floor Room depended on its sister company, Carpetright, for much of its trading infrastructure. Following the latter’s insolvency, management worked to find an alternative solution to preserve the Floor Room’s business as a going concern. However, its financial position meant that it was impossible for the business to continue trading.

“It is with sincere regret that this outcome has had to result in the redundancies of the majority of employees. We are committed to helping those affected and will work hard to ensure redundancy claims are processed as quickly as possible. We know this is an unsettling 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.”