Tapi rescues Carpetright brand as 1,500 jobs lost
Tapi Carpets and Floors Limited acquired the Carpetright brand, IP and 54 stores after the company collapsed into administration
Rival brand Tapi has acquired the Carpetright brand and 54 of its stores out of administration but more than 1,500 jobs are set to be axed, it has been revealed. Whilst the deal has saved over 300 jobs, administrators from PwC said it was with “deep regret” that 1,018 employees were made redundant immediately. Staff at the company’s head office will remain employed for only a short time as the group’s operations wind down.
In a statement, Tapi said: “We are desperately sad not to have been able to save more of the business and customer orders. However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable.
“Carpetright has been materially loss making for a number of years, and it has significant debt held by the owner. We believe that we were the only offer that the administrator received that saved a large number of roles. We were also mindful of how the Competition and Markets Authority (CMA) may view a larger deal.”
Carpetright, which operated 273 stores and had 1,898 employees, has been hit by challenging trading conditions in recent times, largely due to changing consumer preferences and a fall in home improvement spending post-pandemic. The business was also hit by a cyber attack in April 2024, which left it unable to trade for a period of time.
PwC noted that orders placed with stores not rescued in the deal are unable to be fulfilled. To help affected employees, Tapi has launched funding workshops aimed at improving employability skills, and reached out to other retailers to ensure their job applications receive priority.
Zelf Hussain, joint administrator from PwC, said: “Carpetright has fallen victim to challenges facing many retailers, especially those selling big ticket items. 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 added: “However, it is deeply saddening that for the remainder of the workforce there will be redundancies. 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. We know this is an uncertain time for many of those affected and want to thank all the staff for the support they have given the company in these difficult circumstances.”
