Carpet retailer Carpetright has filed a notice to appoint administrators, putting around 1,852 jobs at risk across its 272 UK stores. The company, which operates ten stores in London, is seeking emergency funding or a rescue buyer to avoid insolvency, with PwC reportedly set to be appointed to oversee the process.
Once a notice to appoint administrators is filed, a company has approximately ten days to secure a solution to avoid insolvency. For now, Carpetright continues to operate its stores as usual.
Carpetright Stores in London
In London, Carpetright has branches in the following locations:
- North London: Staples Corner, Holloway, Camden
- West London: Hammersmith
- South London: East Sheen, Wimbledon, Streatham, Clapham Common, Walworth, Old Kent Road
Reasons Behind the Crisis
Carpetright has cited a decline in demand for carpets as homeowners increasingly opt for hard flooring alternatives. Additionally, a significant cyberattack in April disrupted sales, as the company was forced to halt trading temporarily.
Kevin Barrett, chief executive officer of Nestware Holdings, which owns Carpetright, stated: “We remain focused on securing external investment to ensure as few customers and colleagues are impacted as possible. They are our main priority, and we are taking all appropriate action to make sure they are informed and supported through this process.”
Barrett added, “We have begun promising conversations with interested parties that are moving in the right direction, encouraging us that Carpetright has a viable future.”
Impact on Employees and Customers
The potential administration puts nearly 2,000 jobs at risk and raises concerns among customers regarding existing orders and future purchases. Carpetright is working to ensure that employees are supported during this uncertain period and that customer orders are fulfilled without disruption.
Next Steps
PwC’s appointment as administrators will be crucial in determining the retailer’s future. The firm will explore options to secure emergency funding or find a rescue buyer to keep the business afloat.
Carpetright’s situation highlights the ongoing challenges faced by traditional retail businesses in adapting to changing consumer preferences and the impact of cyber threats on operations.
