Carpetright’s future has been secured, but at least 1,000 staff members have lost their jobs under a limited rescue deal.
Rival floorings retailer Tapi has confirmed it is buying just 54 of 272 stores and two warehouses in a so-called pre-pack administration that allows a buyer to cherry-pick assets.
The deal has seen just 308 staff retained.
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The brand and Carpetright’s intellectual property rights have been sold in a separate agreement between Nestware Holdings Ltd. and Tapi Group, a statement said.
It emerged more than a week ago that the retailer was on the brink of administration.
Tapi was founded in 2015 by Lord Harris of Peckham, who also founded Carpetright, but sold his shares in the store in 2014.
Image: Lord Harris of PeckhamA statement said it was with “deep regret” 1,018 individuals “employed at sites which were not included in the transaction, and those providing in-home services, have had to be made redundant immediately on appointment”.
“Carpetright has fallen victim to challenges facing many retailers, especially those selling big ticket items,” Zelf Hussain, joint administrator, said.
Advertisement“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 “has allowed over 300 jobs to be saved”, he added, giving the store the chance to “continue and flourish”.
“However, it is deeply saddening that for the remainder of the workforce there will be redundancies,” Mr Hussain added.
“We are committed to helping those affected and will make sure redundancy claims are processed as quickly as possible.
“In collaboration with Tapi, we will assist in efforts to help individuals find new jobs elsewhere.”
It’s unclear what will happen to the roles of the remaining employees.
Customers were told “orders placed with stores not included in the transaction are unable to be fulfilled” and were advised to contact their payment card provider about the possibility of obtaining a refund.
Founded in 1988 and headquartered in Purfleet, Essex, Carpetright had 273 stores and 1,898 employees.
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Tap hereKevin Barrett, chief executive of Carpetright’s parent firm Nestware Holdings, said in a separate statement: “Our focus over the last week has been to secure external investment to ensure job security for a number of our Carpetright colleagues up and down the country.
“Whilst we succeeded in finding a buyer, the deal is limited to a select number of stores rather than the business as a whole and will sadly impact a large number of colleagues and staff.
“We have tried everything to turn Carpetright around and I’m truly sorry that we were unable to save more jobs.”
Tapi runs about 175 shops across the UK currently.