Administrators set to be called in as Carpetright edges closer to collapse
Carpetright has confirmed that it has filed a notice of intent to appoint administrators, in a move which could put 272 UK stores and over 1,800 jobs at risk.
The flooring retailer has lined up advisory firm PricewaterhouseCoopers (PwC) to handle the process, although no official appointment has been made.
The retailer said it had taken the measure whilst it works to “finalise additional investment to secure the long term future of the company”.
Carpetright pointed towards “financial pressures” following a software attack in April which impacted sales and plans to restructure. The retailer said this has resulted in it seeking a period of protection whilst sale negotiations proceed.
Carpetright said it will continue to operate all stores and services and continue to fulfil all orders and fitting appointments as scheduled.
Kevin Barrett, chief executive of Carpetright’s parent company Nestware, 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.”
Carpetright – which has struggled with a downturn in trading over the last few years –went through a form of insolvency proceedings in 2018 resulting in the closure of a number of stores.
In April, it was reported that the retailer had drafted in advisers from Teneo as it looked to explore cost-cutting options.