Carpetright's Leases And Stock Were Purchased For £3.7m

The Furnishing Report has revealed that Tapi Carpets' acquisition of Carpetright's stock and store leases cost the business £3.7m.

Tapi acquired Carpetright's brand, warehouses and 54 of its stores on 22nd July 2024, ten days after Carpetright announced it had filed a notice of intention to appoint administrators. 

Bensons for Beds acquired 19 Carpetright stores on 7th August, and The Floor Room, one of Carpetright's sister companies, fell into administration on 9th August.    

In a statement on LinkedIn at the time of the collapse, Jeevan Karir, Managing Director of Tapi Carpets & Floors Limited 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. The business has been materially loss making for a number of years and it has significant debt held by the owner. We then turned ourselves to trying to save a number of stores whilst being mindful of how the Competition authorities would look at any deal. So, we arrived at 54 stores and 2 supporting warehouses. All of which are exceptional and that we’d be proud to have as part of the Tapi family.”

Restructuring advisers have revealed the terms for one of the two transactions that came after the collapse of the flooring giant last month, according to The Furnishing Report.

Carpetright was placed into administration in July, with Tapi snapping up its intellectual property, two warehouses and more than a fifth of stores. However, more than 1,000 jobs were lost.

Source : The Furnishing Report and Insight DIY

Image : martinrlee / iStock / 1310936190

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