Carpetright’s future has seen a glimmer of hope. A limited rescue deal has helped save parts of the struggling flooring retailer. However, this move has also led to significant job losses.
Tapi, a competitor, has purchased 54 of Carpetright’s stores and two warehouses. This acquisition has saved 308 jobs but unfortunately resulted in over 1,000 redundancies.
The Deal and Its Impact
Carpetright has been partially saved through a rescue deal. However, it has resulted in the loss of over 1,000 jobs. Tapi, a rival flooring retailer, bought 54 out of 272 Carpetright stores and two warehouses.
The acquisition by Tapi saved 308 jobs. Tapi also purchased Carpetright’s brand and intellectual property rights from Nestware Holdings Ltd. Sadly, 1,018 employees from non-included sites and those providing in-home services were made redundant.
Reasons Behind the Struggles
Carpetright’s troubles were worsened by various factors. Zelf Hussain, joint administrator, cited a reduction in consumer spending due to cost of living pressures, lower home sales, and a cyberattack. These elements severely hampered the business, making it tough to continue.
The situation for Carpetright was dire. Mr Hussain talked about the sorrow over the job losses and promised to process redundancy claims swiftly. He also committed to helping affected workers find new employment.
A Look Back at Carpetright
Carpetright was founded in 1988. It had grown to operate 273 stores and employed 1,898 staff members. Its headquarters are in Purfleet, Essex.
The company had been teetering on the edge of administration for over a week before the rescue deal was finalised. Founded by Lord Harris of Peckham, Carpetright had a rich history in the flooring industry.
Tapi’s Role in the Rescue
Tapi, the saviour of some Carpetright stores, was founded in 2015 by Lord Harris. The company currently operates around 175 stores across the UK.
In the deal, Tapi acquired stores in various locations, including Basildon, Birmingham, Bristol, Chesterfield, and more. This selective acquisition ensured that only certain profitable stores were saved.
Tapi’s involvement has helped retain a portion of Carpetright’s workforce. However, this move has not come without significant sacrifices.
Responses and Reactions
Kevin Barrett, CEO of Carpetright’s parent company, Nestware Holdings, expressed sorrow over the job losses. He emphasised the efforts put in to secure external investment to save as many jobs as possible.
Barrett admitted that the deal was limited to a select number of stores. As a result, a large number of colleagues were impacted, highlighting the harsh realities of the rescue deal.
Customer Guidance
Customers with existing orders at stores not included in the transaction were advised to contact their payment card providers. They may be eligible for refunds.
Looking Ahead
The fate of the remaining Carpetright employees is uncertain. The business now faces a new chapter, with hopes of stability under the partial acquisition by Tapi.
The deal offers a lifeline for Carpetright but comes with considerable sacrifice. Over a thousand jobs have been lost, and many employees face uncertainty. However, the move assures the continuation of the brand and the retention of some jobs under Tapi’s umbrella.