Nestware, owner of Carpetright, faces significant financial consequences following the closure of The Floor Room, with a reported loss of £10.8 million.
- The high-end flooring supplier, The Floor Room, was placed into administration in August, resulting in substantial job losses and financial setbacks for Nestware.
- Nestware had been supporting The Floor Room with an intercompany loan, which has now been written off as irrecoverable.
- The administration of The Floor Room follows closely on the heels of Carpetright’s financial write-offs, indicating broader financial challenges within Nestware.
- Multiple retail partners and a large customer base are affected, with millions in outstanding orders and rent owed.
Nestware, the parent company of Carpetright, has encountered a notable financial setback due to the administration of its upmarket flooring division, The Floor Room. The administration, initiated in August, led to a direct financial hit of £10.8 million. This event underscores a period of financial turbulence for the group.
The closure of The Floor Room resulted in the loss of 201 jobs. This supplier was pivotal for John Lewis department stores, being their exclusive flooring provider since May 2023, and maintained a standalone store in London. The abrupt cessation has impacted both retail operations and employee livelihoods significantly.
A key financial component of this setback involves an intercompany loan of £10.8 million to The Floor Room. Nestware has confirmed this amount as irrecoverable, further aggravating its financial strain.
In the broader scope, Nestware’s financial difficulties are not confined to The Floor Room. The group has also written off a substantial £175.4 million concerning its Carpetright operation, previously placed into administration as well. This sum encompasses a £120 million revolving credit facility and £54.7 million in loans.
The ripples of this financial distress extend outward, affecting Nestware’s creditors and customers. At least 11 retail businesses, including prominent names like B&M, Furniture Village, and Lidl, are owed nearly £3.5 million in rent. Additionally, approximately 21,000 customers are left with £8 million in unfulfilled orders, highlighting the extensive impact of these administrative decisions.
The administration of The Floor Room marks a significant financial and operational challenge for Nestware, reflecting broader issues within the group.
