Carpetright bailout could result in 1,500 job losses | Business News

Carpetright’s future is secure, but the vast majority of its 1,800 employees are set to lose their jobs under a limited rescue deal.

Rival flooring retailer Tapi is believed to confirm it is buying just 54 of 272 stores and two warehouses in a so-called pre-pack administration, which allows the buyer to choose assets.

The agreement, however, would maintain only 300 employees.

Carpetright’s brand and intellectual property rights are also believed to be included in the sale.

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It was discovered more than a week ago that the retailer was on the brink of administration.

Tapi has not yet confirmed the numbers involved and has withdrawn an initial announcement confirming the details.

However, Kevin Barrett, chief executive of Carpetright’s parent company Nestware Holdings, said in a separate statement: “Our focus over the last week has been on securing external investment to ensure job security for a number of our Carpetright colleagues across the country.

“While we have been able to find a buyer, the deal is limited to a select number of stores rather than the business as a whole and will unfortunately affect a large number of colleagues and staff.

“We tried everything we could to turn around the Carpetright situation and I am very sorry that we were unable to save more jobs.

“The agreement will not affect Carpetright in Europe or other Nestware Holdings brands, including Keswick and Trade Choice.

“The Floor Room will continue to trade and serve customers through concessions at John Lewis and we will work hard to secure employment opportunities with these businesses to support the Carpetright team wherever we can.”

Carpetright’s headquarters in Purfleet, Essex, is not included in the sale.

Tapi was founded in 2015 by Lord Harris of Peckham, who also founded Carpetright.

He sold all his Carpetright shares in 2014.

Tapi currently runs around 175 stores across the UK.

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