Carpetright stores in Hull set to close
More than 200 stores are expected to shut
TWO stores in Hull look set to close after Carpetright was bought in a rescue deal that will see more than 1,000 jobs cut around the country.
It was announced on Monday the flooring retailer Tapi had agreed to buy 54 Carpetright stores, two warehouses, the brand and its intellectual property in a pre-pack administration deal. The deal will save more than 300 current jobs nationally.
However, it will not save the majority of the business, with more than 200 stores expected to close, including those in Clough Road and St Andrew’s Quay. The two Hull stores were included on a list as provided by administrators PWC.
Carpetright, owned by Nestware Holdings, filed a notice to appoint administrators earlier this month, following struggles with weaker demand and a significant cyber attack in April.
Before entering insolvency, the company employed 1,852 people and operated 273 stores across the UK.
Administrators have said they will retain staff at the head office for the short term as operations wind down.
However, they also announced that 1,018 employees will face immediate redundancy across stores not included in the rescue deal.
Zel Hussain, joint administrator at PWC, commented: “The sale of some stores and the brand to Tapi has allowed more than 300 jobs to be saved, and gives the Carpetright brand the chance to continue and flourish under its new ownership.
“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.”
The administrators have stated that orders made at stores now set for closure “are unable to be fulfilled” and advised customers to contact their card provider in order to potentially secure a refund.
Tapi was established in 2015 by Lord Harris of Peckham, who also founded Carpetright. He sold all his shares in Carpetright in 2014.
In recent years, Tapi has seen rapid growth and operates about 175 shops across the UK, including one at Hull’s Clough Road Retail Park.
Jeevan Karir, managing director of Tapi Carpets & Floors, said: “Our goal, initially, was to try to save all of Carpetright. However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable.”
Mr Karir added that Tapi was “mindful of how the competition authorities would look at any deal” when assessing how many stores it could save through a rescue deal.
Nestware chief executive Kevin Barrett said: “Our focus over the past week has been to secure external investment to ensure job security for a number of our Carpetright colleagues up and down the country.
“While we succeeded in finding a buyer, the deal is limited to a select number of stores rather than the business as a whole and will sadly impact a large number of colleagues and staff.
“We have tried everything to turn Carpetright around and I’m truly sorry that we were unable to save more jobs.”
Carpetright has recently been hit by a slump in carpet demand as homeowners move towards hard flooring, and a significant cyber attack in April that stopped trading. The company stated earlier this month that the cyber attack’s impact on sales hindered its restructuring efforts in recent months.