Tapi Acquires Carpetright Brand, Warehouses and 54 Stores

Tapi Carpets, the main competitor to Carpetright has acquired the chain’s brand, two warehouses and 54 stores in a pre-pack administration deal.

The flooring retailer founded in 2014 by Martin Harris, the son of Carpetright founder Lord Harris of Peckham – who is also a shareholder, has acquired Carpetright’s intellectual property, two warehouses and 54 of its stores, which Tapi said will save 308 jobs and “expand into a number of areas we don’t currently serve”.

However unfortunately, the deal will result in over 1,000 job losses across Carpetright’s HQ in Purfleet, Essex and its remaining 218 UK stores across.. Administarors at PwC said it will retain employees at the head office for a short period to support the winding down of operations.

Tapi managing director Jeevan Karir 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 two supporting warehouses. All of which are exceptional and that we’d be proud to have as part of the Tapi family.”

PwC joint administrator Zelf Hussain added: “Carpetright has fallen victim to challenges facing many retailers, especially those selling big ticket items. A mixture of factors, including a big reduction in consumer spending due to cost of living pressures, lower house sales and a debilitating cyber attack made it impossible for the business to continue in its current form.

“The sale of some stores and the brand to Tapi has allowed over 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. In collaboration with Tapi, we will assist in efforts to help individuals find new jobs elsewhere. We know this is an uncertain time for many of those affected and want to thank all the staff for the support they have given the company in these difficult circumstances.”

Earlier this month, Carpetriget hired PWC to find a buyer as it struggled with increased competition and a slowdown in demand.

The flooring specialist filed a notice of intention to appoint the firm as administrators the same week as it sought a “period of protection” whilst it works to finalise additional investment to secure the long term future of the company.

Tapi is understood to have been the only company to submit an offer that involved rescuing both jobs and stores – other options included liquidating the business entirely.

Source: Insight DIY

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