Over 1,000 jobs lost as stricken carpet retail giant carved up

The Birmingham (Erdington), Coventry (Airport Retail Park) and Hereford outlets of stricken retailer Carpetright are among the 54 stores sold by administrators PwC to CWHP, part of the Tapi Group.

The deal will save the livelihoods of 308 people – but over 1,000 people have lost their jobs.

Carpetright is a British retail chain selling carpets, flooring and beds and is a subsidiary of Nestware Holdings. Founded in 1988, the company operates across the UK and the Republic of Ireland. Headquartered in Purfleet, Essex, it has 273 stores and 1,898 employees.

The company has been hit by challenging trading conditions, predominantly due to changing consumer preferences and a drop in home improvement spending post-pandemic, say joint administrators Zelf Hussain, Rachael Wilkinson and Peter Dickens of PwC. The business was also impacted by a cyber attack in April 2024, which left it unable to trade for a period of time.

Administrators say the deal represents the best option available to generate returns for creditors, under “severely limited timescales”. A separate agreement was reached between Nestware Holdings and Tapi Group for the company’s intellectual property and brand.

Employees have been retained at the company’s head office in Purfleet for a short time to support in winding down operations. Some 1,018 staff not involved in the deal have been made redundant.

Hussain 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.”