Carpetright Job Losses Following Sale to Tapi Retailer

In a significant yet unfortunate turn of events for the flooring industry, more than 1,500 staff members at Carpetright are set to lose their jobs. This news comes despite a recent deal made by rival retailer Tapi Carpets & Floors, which has reportedly saved some of Carpetright’s stores.

Tapi has acquired the Carpetright brand name, along with the company’s intellectual property, two warehouses, and 54 stores, ultimately salvaging 308 jobs. However, the majority of Carpetright’s workforce, which employed over 1,800 people before it entered insolvency, will not be part of this transition.

Jeevan Karir, managing director of Tapi, expressed a desire to save the entire Carpetright business, but acknowledged that it was simply “unviable.” He highlighted that while the deal has preserved over 300 roles, hundreds of additional workers across the Carpetright head office in Purfleet, Essex, and various shops will only be retained temporarily to wind down operations.

The fate of the remaining workers came to light as PwC, the appointed administrators for Carpetright, confirmed their roles. In a statement released on Monday, they noted that administrators are working diligently with affected employees to ensure they receive their due payments swiftly.

Zelf Jussain, joint administrator at PwC, remarked on the challenging circumstances for those impacted. “The sale of some stores and the brand to Tapi has allowed over 300 jobs to be saved,” he stated. “It gives Carpetright the opportunity to thrive under new ownership. However, it is deeply saddening that redundancies are necessary for the remaining workforce.”

Adding to the support for former employees, PwC has mentioned that Tapi is collaborating with other retailers to prioritize job applications from those affected by the layoffs.

Karir further reflected on the disappointing situation, noting that he felt “desperately sad” for not being able to save more of the business. This reaction highlights the tough realities retailers face in the current economic climate.

Kevin Barrett, CEO of Nestware Holdings, the parent company of Carpetright, also expressed regret over the situation as Carpetright’s search for extra investment to stabilize operations didn’t yield the comprehensive rescue they had hoped for. He highlighted that while the acquisition allows for a limited number of stores to continue, it sadly implies significant impacts on a large number of colleagues and staff.

Barrett pointed out the striking challenges faced by Carpetright, noting that their plans to restructure the business were severely hindered. He mentioned a specific incident where a cyber-attack in April significantly stopped orders from being placed on the website, leading to a slump in sales.

Broader trends in consumer behavior have further compounded issues for retailers selling significant goods; many shoppers are now focusing on everyday essentials due to the ongoing cost-of-living crisis, rendering high-ticket item sales increasingly difficult.

Customers who have pending orders with Carpetright stores not included in the Tapi acquisition have been advised to contact their payment card provider regarding potential refunds. This guidance comes as a practical step to assist shoppers who might be left in a lurch due to the recent developments.

Carpetright was originally founded by Lord Philip Harris in 1988, with its very first store opening in Canning Town, East London. Over the years, the brand enjoyed a trajectory of success, even listing on the London Stock Exchange in June 1993 before being delisted in 2020.

Once nicknamed the «King of carpets,» Lord Harris’s family subsequently joined him in the homewares business, with several members involved in the founding of Tapi, which was established about a decade ago. Notably, Lord Harris continues to act as an adviser for the new owner, Tapi.