Carpetright Is Facing Administration With Thousands of Jobs at Risk
- Carpetright to file for administration
- 3,000 jobs in jeopardy
- PwC involved in the process
Carpetright, the well-known flooring retailer, is set to file for administration, putting 3,000 jobs in danger. According to sources, the company, which has been struggling with declining sales, was unable to achieve a solvent sale. The news highlights the ongoing difficulties faced by homeware retailers amid a tightening consumer spending environment.
In a bid to save the business, advisers from PwC have been appointed to manage the administration process. Filing a notice of intent to appoint an administrator usually allows a company 10 days to find a rescue buyer before it goes bust. During this period, Carpetright will continue to trade as usual. However, the pressure is on to secure a buyer and avoid potential store closures.
The Times reported that Carpetright had been up for sale, but it now appears the situation is more dire than initially thought. The company, which operates around 274 stores across the UK, has faced significant challenges due to increased competition and a drop in consumer spending on homeware.
Founded in 1988 by Lord Harris of Peckham, Carpetright was taken off the stock market in 2019 by its largest investor, Meditor. However, internal competition from Martin Harris, son of the founder and the owner of rival flooring retailer Tapi, has further complicated the business landscape.
Restructuring experts Teneo were brought in earlier this year to explore cost-cutting measures, but the efforts have not been enough to stabilize the company. The recent financial struggles are a part of a broader trend affecting the home improvement sector, with companies like B&Q and Screwfix also reporting slumps in profits.
Tom Church, Co-Founder of LatestDeals.co.uk, commented, “This news underscores the tough retail environment. Homeware and flooring businesses have been hit hard by changes in consumer spending patterns. The hope now is for a swift resolution that safeguards jobs and finds a sustainable path forward for Carpetright.”