Failing UK carpet retailer, Carpetright, has been saved from collapse by flooring rival, Tapi, though hundreds of stores are expected to close with over 1,000 jobs believed to be at risk. The deal agreed will see Tapi purchasing the Carpetright name, intellectual property, 54 stores and two warehouses, but reportedly leaves over 200 stores not included in the agreement. Initially, Tapi had hoped to save all of Carpetright, but due to the circumstances of the business, this was deemed unfeasible. Nonetheless, the agreement is hoped to secure around 300 jobs.
Earlier this month, it was announced that Carpetright was close to entering administration and was reportedly looking for additional funding. On Monday, Tapi’s managing director, Jeevan Karir, revealed that Carpetright had been in debt and was operating at a loss. Tapi issued a statement expressing its sadness about not being able to save more of the business, and saying that it believed that its offer was the only one that would “save a large number of roles”.
Carpetright had employed around 1,800 workers across 272 stores. The retailer’s owner, Nestware Holdings, and other retailers were adversely affected by a cyber-attack in April, which saw customer demand slow for big-ticket items as people focused on essential items in the cost-of-living crisis. Carpetright was founded in 1988 and had enjoyed success for many years, including a listing on the London Stock Exchange in 1993. It was subsequently delisted in 2020. Tapi is believed to be considering further expansion into other areas of the UK as part of the deal
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