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Latest NewsRetailJob creation and lossesTUPE

More than 1,500 jobs to go at Carpetright

by Rob Moss 22 Jul 2024
by Rob Moss 22 Jul 2024 Carpetright in Gateshead is not included in the deal. Photo: Anthony McLaughlin/Shutterstock
Carpetright in Gateshead is not included in the deal. Photo: Anthony McLaughlin/Shutterstock

Most Carpetright stores are to close with the loss of more than 1,500 jobs after a rescue deal saw only a fifth of the retailer’s 273 stores acquired by its rival Tapi Carpets and Floors.

PwC had been looking for a buyer after Carpetright filed a notice to appoint an administrator earlier in this month. The retailer had faced challenging trading conditions, mainly due to changing consumer preferences and a fall in home improvements since the pandemic. Carpetright was also hit by a cyberattack in April 2024, leaving it unable to trade for almost a week.

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Tapi Group is to acquire 54 stores, Carpetright’s brand and intellectual property and two logistics hubs, but not its headquarters in Purfleet, Essex. The transaction includes the transfer of 308 employees.

PwC said 1,018 Carpetright jobs would be lost immediately in the “pre-pack” deal, while an additional 500 jobs, mainly at its head office, are expected to be cut once the acquisition is complete.

Zelf Hussain, joint administrator, said: “Carpetright has fallen victim to challenges facing many retailers, especially those selling big-ticket items.

“A mixture of factors, including a big reduction in consumer spending due to cost-of-living pressures, lower home sales and a debilitating cyberattack made it impossible for the business to continue in its current form.”

He added: “It is deeply saddening that, for the remainder of the workforce, there will be redundancies. We are committed to helping those affected and will make sure redundancy claims are processed as quickly as possible. In collaboration with Tapi, we will assist in efforts to help individuals find new jobs elsewhere.

“We know this is an uncertain time for many of those affected and want to thank all the staff for the support they have given the company in these difficult circumstances.”

Jeevan Karir, managing director of Tapi, said it had initially wanted to buy Carpetright in its entirety but had concluded that doing so was “unviable”.

The administrators are working closely with the Redundancy Payments Service to ensure that those affected receive their statutory entitlements as soon as possible.

A full list of the stores included in Tapi’s acquisition is available on the Carpetright website.

 

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Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

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