Nine South West stores saved from closure as Carpetright collapses into administration

Nine stores in the South West have been saved from closure following the collapse of national retailer Carpetright.

The company has fallen into administration and the joint administrators have sold of 54 stores and two logistics hubs to CWHP which is part of the Tapi group.

The firm, which operated across the UK had a total of 273 stores and 1,898 employers.

The deal with CWHP has saved the jobs of just over 300 members of staff.

The 1,018 staff employed at sites which were not included in the transaction and those providing in-home services have lost their jobs.

Zelf Hussain, Rachael Wilkinson and Peter Dickens of PwC were appointed as joint administrator.

Carpetright was a subsidiary of Nestware Holdings. Founded in 1988, the company operates across the UK and the Republic of Ireland and had its head office in Essex

The company has been hit by challenging trading conditions, predominantly due to changing consumer preferences and a drop in home improvement spending in the wake of the pandemic.

The business was also hit by a cyber attack in April which had left it unable to trade for a period of time.

The administrators say the deal was the best option available to generate returns for creditors as a whole given the severely limited timescales.

The administrators will keep hold of employees at the company’s head office in Purfleet for a short time to support in winding down operations.

Orders placed with stores not included in the transaction will not be fulfilled, and it is recommended that affected customers contact their payment card provider about the possibility of obtaining a refund.

Zelf Hussain, joint administrator, said: “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 home 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.”

The nine stores saved from closure in the South west were

Bristol Longwell Green

Chippenham

Plymouth

Swindon

Trowbridge

Truro

Weston-super-Mare

Weymouth

Yeovil