Carpetright Faces Collapse with Thousands of Jobs at Risk

Carpetright, a major UK flooring retailer, is on the verge of collapse, casting uncertainty on over 1,800 jobs. The company has taken steps towards appointing administrators in a bid to secure additional financial support.

PricewaterhouseCoopers (PwC) is poised to handle the administration process, as Carpetright grapples with financial challenges. Despite this, the retailer reassured that its 272 stores will remain operational while it explores options to navigate the crisis.

Amidst the looming collapse, order fulfillments will persist, although refunds will not be entertained. Alternative products and expedited deliveries are being offered as substitutes.

Kevin Barrett, CEO of Nestware Holdings, Carpetright’s parent company, cited a downturn in April trade triggered by a cyber-attack as a setback to their restructuring efforts. The company is now seeking protection during sale negotiations to safeguard its future.

Carpetright’s struggles reflect the harsh retail landscape, notably impacted by a decline in consumer demand. Analysts, including John Cullen from Menzies, highlighted how the cyber-attack exacerbated existing challenges, further straining the company’s financial health.

The retailer now has a brief respite of 10 days to secure a buyer and potential rescue. This episode adds to Carpetright’s history of financial turmoil, having undergone insolvency proceedings previously, including delisting from the FTSE in 2020.

Founded in 1988, Carpetright began as a London-based store, steadily expanding its offerings to include not only flooring but also mattresses, curtains, and garden furniture. The company’s latest woes underscore the fragility of the retail sector, with Carpetright emerging as a prominent casualty in the industry.