Despite a deal by rival flooring retailer Tapi Carpets & Floors to acquire some of its stores and assets, Carpetright will lay off more than 1,500 employees as the company enters insolvency.
Tapi's purchase includes the Carpetright brand name, intellectual property, two warehouses, and 54 stores, saving 308 jobs. However, the remaining employees will be made redundant, either immediately or in the coming weeks. Tapi had initially hoped to save the entire company but deemed it unviable.
Carpetright, which employed over 1,800 staff and operated 273 stores, faced financial difficulties due to a cyberattack, declining consumer demand, and the ongoing cost-of-living crisis. PwC, appointed as administrators, is working to ensure affected employees receive their entitled payments.
While Tapi's CEO expressed regret at not being able to save more jobs, the deal is seen as a chance for the Carpetright brand to continue under new ownership. Tapi has also pledged to prioritise job applications from former Carpetright employees at other retailers.
Carpetright's parent company, Nestware Holdings, emphasised its efforts to find additional investment but acknowledged the limitations of the deal. The company's stores in Europe and other brands will not be affected.
