Carpetright rescued by rival but jobs are at risk

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Carpetright is set to be saved from collapse by rival flooring retailer Tapi but hundreds of its shops are expected to close, putting many jobs at risk.

Tapi Carpets & Floors is expected to buy the Carpetright brand name, the company's intellectual property, two warehouses and 54 stores.

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 the deal would save about 300 jobs.

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.

On Monday, Mr Karir said that Carpetright had been loss-making and in debt.

In a statement, Tapi 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," it 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.

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.