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More than 1,800 jobs are in jeopardy as Carpetright prepares for administration. The well-known carpet and flooring retailer, with stores in Cannock, Oldbury, Oswestry, Shrewsbury, Telford, Wednesbury, and Wolverhampton, has filed a notice of intent to appoint administrators, signalling severe financial distress.
Experts from PwC are expected to be appointed to manage the administration process, seeking either emergency funding or a rescue buyer to save the struggling business. This notice typically grants companies around 10 days to avoid insolvency.
Carpetright, which employs 1,852 people and operates 272 stores across the UK, continues to trade as normal despite the looming threat. The retailer, owned by Nestware Holdings, has faced a decline in demand for carpets as consumers shift towards hard flooring. Additionally, a major cyber attack in April significantly disrupted operations, hampering recent restructuring efforts.
Kevin Barrett, CEO of Nestware Holdings, emphasized the company’s focus on securing external investment to minimize the impact on customers and staff. “They are our main priority, and we are taking all appropriate action to make sure they are informed and supported through this process,” Barrett stated. He also mentioned that discussions with interested parties are progressing, offering hope for Carpetright’s future.
Sky News reported that Carpetright, founded by Lord Harris of Peckham in 1988, has struggled with a prolonged downturn in trading, exacerbated by the cost of living crisis and intense competition. The company had already cut over 25% of its head office staff in Essex earlier this year in an attempt to reduce costs.
Carpetright’s financial woes reflect broader challenges in the retail sector, where consumer confidence has been weakened by economic pressures since the COVID-19 pandemic. Despite these hurdles, the retailer is actively seeking solutions to secure its long-term viability and protect as many jobs as possible.
