Carpetright brand sold out of administration

Tapi Group has purchased the brand name, as well as 54 stores and two logistics hubs – with the transaction including the transfer of 308 employees – although this is under a quarter of the 273 stores and 1,898 employees the business currently has.  

Tapi managing director Jeevan Karir said initially it had wanted to save Carpetright in its entirety but “quickly established” that doing so was “unviable”.  

The deal comes just over a week after it emerged the business was close to collapse, with PwC appointed as an administrator while it looked for extra funding. On Monday, PwC said administrators were working with Redundancy Payments Service to ensure affected employees receive the payments they’re entitled to as soon as possible.

It also said Tapi will be collaborating with other retailers to ensure their job applications “receive priority” and will fund workshops aimed at improving employability skills for those impacted.  

Joint administrator Zelf Hussain 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 cyber attack made it impossible for the business to continue in its current form. 

“The sale of some stores and the brand to Tapi has allowed over 300 jobs to be saved, and gives the Carpetright brand the chance to continue and flourish under its new ownership. However, 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.”

The administrators will retain employees at the company’s head office in Purfleet for a short time to support the winding down of operations.