Carpetright, a prominent flooring retailer in the UK, is facing imminent collapse, putting more than 1,800 jobs in jeopardy. The company has filed a notice of intention to appoint PricewaterhouseCoopers (PwC) as administrators while it seeks additional funding to stay afloat. Despite the looming administration, the company's 272 stores will remain open for now, fulfilling existing orders but suspending refunds, offering alternative products, or expedited delivery instead.
The retailer's restructuring plans were severely hampered by a cyber attack in April, causing a significant slump in trade. This, coupled with slowing customer demand due to challenging economic conditions, has pushed the company to seek a period of protection while it negotiates a potential sale.
Carpetright's struggles highlight the difficult trading conditions facing retailers, especially those selling big-ticket items. The cyber attack has been identified as the final straw for the already struggling company. The firm has been granted 10 days to find a buyer and avoid complete collapse.
This is not the first time Carpetright has faced financial difficulties. Six years ago, the company went through a form of insolvency proceedings, resulting in the closure of 81 stores. Founded in 1988, the company once enjoyed success and was listed on the London Stock Exchange but was delisted in 2020. Now, it sells a variety of products, including mattresses, curtains, blinds, garden furniture, and artificial grass, in addition to flooring.
