Carpetright is on the brink of collapse: the British carpet giant has announced plans to appoint administrators, seeking to save (parts of) itself. 1,800 British jobs would be at risk, but the chain also has shops in Belgium and the Netherlands.
Protection from creditors
The announcement gives Carpetright ten days’ protection from creditors, while negotiations are under way to save as many of its 272 British shops as possible. As well as struggling with the effects of the economic crisis(es), the chain was hit hard by a cyber attack in April. Last month, the chain considered a recovery plan that included the closure of a quarter of its shops, but since then the situation is said to have worsened further.
There is also fierce competition in the British flooring market, not least from Tapi, a carpet chain founded by the family of Carpetright founder Philip Harris. That chain, incidentally, is also said to have already shown interest in (some of) Carpetright’s shops.
CEO Kevin Barrett of Nestware, Carpetright’s parent company, told The Guardian that he remains “focused on securing external investment to ensure as few customers and colleagues are impacted as possible.”>
Decade of problems
The news does not come as a complete surprise: Carpetright has been in trouble for years and already closed 92 British shops in 2018. A year later, it came into the hands of its biggest creditor, investor Meditor, when a mountain of debt was converted into shares.
It is still unclear whether there will be any impact on the branches in Belgium and the Netherlands. A question from the RetailDetail editorial team about this has not yet been answered.
