Carpetright set for rescue but jobs are at risk

Carpetright is set to be saved from collapse by rival flooring retailer Tapi but hundreds of its shops are expected to close, putting 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 all of Carpetright, but it "quickly established saving the entire business was unviable".

He said that the deal would save about 300 jobs, but it is not thought to include more than 200 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.

Carpetright employed 1,800 people across 272 stores.

Kevin Barrett, boss of Nestware Holdings, which owns Carpetright and several other retailers, said its plan to restructure the business was hit by a slump in April because of a cyber-attack.

But it also said customer demand had slowed.

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.