Carpetright: Staff and customers to lose out as rival Tapi set to rescue brand out of administration

Carpetright is on the brink of being rescued out of administration but more than 1,000 jobs are set to be lost.

The major carpet and tiling retailer, which is headquartered in Essex, is about to be snapped up by rival Tapi for an undisclosed sum.

The move will save the jobs of more than 300 people and 54 stores.

Carpetright ran around 270 stores across the UK and employed around 1,800 people.

In its most recently filed set of accounts , for the 14 months to January 1, 2022, Carpetright reported a revenue of £372.6m, down from £493.2m in the prior 18 months, while its pre-tax loss was cut from £64.3m to £23.1m.

Its accounts for 2022 were due to be filed with Companies House by the end of 2023 but are late.

Carpertright launched a CVA back in 2018 which entailed 81 store closures, rent reductions and business restructuring in order to stay alive.

Speaking earlier this month,

Rebecca Dacre, partner at Mazars, said: “We are unlikely to see the retail sector trading comfortably until interest rates start to fall.

“Despite inflationary pressures easing, high interest rates and low consumer spending continue to persist.

“The rise in the National Living Wage is the largest on record and some face a sharp rise in business rates from April.

“One of the issues that chains like Carpetright will face is who will want to rent their excess space.”

This story has been updated after receiving updated information from Tapi.