The future of Carpetright has seen partial security through a strategic takeover by Tapi, though it comes with considerable downsizing. This development includes:
- Tapi’s acquisition of 54 Carpetright stores, alongside two warehouses, saving 308 jobs.
- A separate sale of Carpetright’s brand and intellectual property to Tapi Group.
- Immediate redundancies for 1,018 employees from non-included sites and in-home service providers.
- Carpetright faced significant challenges, including reduced consumer spending, which prompted this outcome.
Tapi, a rival flooring retailer, has acquired 54 out of 272 Carpetright stores, along with two warehouses, through a pre-pack administration. This strategic move has retained 308 staff members and preserved some operational aspects of Carpetright. In a parallel transaction, Carpetright’s brand and intellectual property rights have been sold to Tapi Group by Nestware Holdings Ltd, securing the brand’s continuity.
Carpetright had been on the verge of administration for over a week prior to the deal. The company, originally founded by Lord Harris of Peckham in 1988, has struggled with a combination of reduced consumer spending due to cost of living pressures, decreased home sales, and a debilitating cyber attack. These factors rendered the business unsustainable in its current form, as explained by joint administrator Zelf Hussain.
The agreement with Tapi has, regrettably, led to the immediate redundancy of 1,018 employees from stores not included in the acquisition and those involved in providing in-home services. This has been a distressing outcome for many employees, despite the preservation of over 300 jobs. Kevin Barrett, CEO of Nestware Holdings, expressed that while the focus was on securing external investment to ensure job security, the deal’s limited scope has had significant repercussions.
Affected employees have been assured that redundancy claims will be processed swiftly, and efforts will be made to assist them in finding new employment. Customers with orders placed at stores not included in the deal are advised to contact their payment card providers for potential refunds.
The fate of the employees from the non-acquired stores remains uncertain, reflecting the broader challenges faced by the retail sector in adapting to economic pressures. Tapi, which operates around 175 stores across the UK, has confirmed the acquisition of Carpetright locations in various regions, including Basildon, Birmingham, Bristol, and Edinburgh.
This limited rescue deal highlights the challenges within the retail sector, securing Carpetright’s future at the cost of significant job losses.
