Tapi eyes rescue deal for rival Carpetright
Tapi Carpets is closing in on a deal to rescue its rival Carpetright, as it emerges as a frontrunner to acquire the embattled flooring retailer.
Tapi Carpets is not believed to be interested in an acquisition of Carpetright’s head office, The Times has reported.
Tapi’s prospective acquisition of Carpetright would likely be delivered through a pre-pack administration, potentially leading to the closures of some of the retailer’s 272 UK stores.
The Times reports that it is thought that Carpetright’s executives had not wanted to approach Tapi due to fears surrounding sensitive trading information. It is understood that Carpetright was looking for a quick sale, and was worried Tapi would have to go through competition clearance.
Last week, Carpetright confirmed that it had filed a notice of intent to appoint administrators, with PricewaterhouseCoopers (PwC) lined up to handle the process.
The retailer said it had taken the measure whilst it works 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.