UK DIY News
Tapi Understood To Have Made A Bid For Carpetright
Tapi, one of Carpetright's key competitors, is understood to have made a formal bid for the brand and part of its store estate. The Times reports that Carpetright's IP is also part of the bid, but not its Purfleet, Essex, head office.
On Friday 12th July, Carpetright announced it had filed a notice of intention to appoint administrators, securing ten days of protection from creditor action, during which it can try to determine a way to proceed to avoid insolvency.
Tapi, the flooring chain founded by ex-Carpetright director Martin Harris – son of Carpetright founder Lord Harris, who remains on the board of Tapi – opened its first store in 2015, and now trades from over 170 branches. Harris has since left the business.
A pre-pack administration deal is widely believed to be the most likely purchase scenario.
At the time of the announcement Kevin Barrett, the CEO of Nestware Holdings, Carpetright's parent company, said: "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.
"We have begun promising conversations with interested parties that are moving in the right direction, encouraging us that Carpetright has a viable future."
The Floor Room – another company owned by Nestware Holdings – Kingfisher; Alteri; Hilco and Gordon Brothers were understood to have been approached by Carpetright to determine their interest in the business. Carpetright is not believed to have approached Tapi due to the sensitive concerns that sensitive trading information .
Carpetright has struggled for some time in a competitive marketplace subject to declining demand. In April 2024, Carpetright was unable to trade for almost a week following a cyber attack, and a month later, the retailer announced its intention to cut head office staff by 25%.
In 2020, Carpetright was taken over by Meditor, which already owned 29.9% of Carpetright's shares and had acquired £40 million of its debt in the previous year. The remaining shares were acquired at a cost of 5p per share - valuing the company at £15.2 million.
In April 2018, Carpetright implemented a CVA and confirmed the closure of 92 stores.
Source : Insight DIY
Image : martinrlee / iStock / 1310936190
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