Tapi buys Carpetright, but 200+ stores to close
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Tapi has bought the Carpetright brand and 56 stores in a pre-pack deal from company administrators. More than 200 Carpetright stores will close and over 1,500 employees will lose their jobs.
"Carpetright has fallen victim to challenges facing many retailers, especially those selling big ticket items," said Zelf Hussain, joint administrator with PwC.
"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," he said.
The deal includes two Carpetright warehouses. The list of store purchased in shown below.
Tapi says it had hoped to be able to save all the 273-store chain but doing so risked a probe from the Government's Competition and Markets Authority.
The stores acquired by Tapi are: Basildon, Birmingham - Erdington, Bishopbriggs, Bristol - Longwell Green, Camborne, Camden, Carmarthen, Cheadle, Chesterfield, Chichester, Chippenham, Clapham Common, Coventry - Airport Retail Park, Cramlington, Croydon, Dumbarton, Dumfries, East Sheen, Edinburgh - Hermiston Gait, Epsom, Farnborough, Friern Barnet, Haywards Heath, Hemel Hempstead, Hereford, High Wycombe - Loudwater, Holloway, Hove, Ipswich - Anglia Park, Lancaster, Leeds - Kirkstall, Maidstone, Mansfield, New Malden, Newbury, Newmarket, North Shields, Norwich - Sprowston, Peterborough, Plymouth - Marsh Mills, Southampton - Hedge End, Stockton, Swindon - Bridgemead, Teddington, Trowbridge, Truro, Washington - Armstrong, West Wickham, Weston-Super-Mare, Weymouth, Whetstone, Wimbledon, Woking, Yeovil, Chessington Warehouse, Croydon Warehouse.
Tapi was founded in 2015 by a number of directors, including Martin Harris, 55, whose father is the “carpet king” Lord Harris of Peckham, who founded Carpetright. Lord Harris divested his Carpetright shareholding in 2014.
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15 July 2024
Carpetright filed a notice of intent to appoint administrators on Friday but says its working on plans to secure its way forward with additional investment.
"We have begun promising conversations with interested parties that are moving in the right direction, encouraging us that Carpetright has a viable future," said Kevin Barrett, CEO of parent company Nestware Holdings.
"We remain focussed on securing external investment to ensure as few customers and colleagues are impacted as possible," said Barrett. "They are our main priority and we are taking all appropriate action to make sure they are informed and supported through this process."
There is speculation that a rescue may be achieved through Carpetright's sister company The Flooring Room, the operator of John Lewis’s flooring concessions. The Times newspaper has also reported that B&Q owner Kingfisher and investment firms Hilco, Gordon Brothers and Alteri have also been approached to gauge potential interest.
The notice of intent to appoint administrators protects the business against creditors while sale negotiations proceed. It is understood that PwC is on standby as administrators if the need arises.
Any re-structuring plan might involve reducing the 272 store portfolio and re-negotiating rents with landlords.
News of Carpetright's difficulties went public over the weekend and it remains to be seen how much effect the negative publicity has on current trading and suppliers will be watching closely to assess the impact on unpaid invoices.
See also related item of July 11: "Struggling Carpetright"
