On appointment, the joint administrators completed a sale of 54 stores and two logistics hubs to CWHP Ltd, part of the Tapi Group. The transaction includes the transfer of 308 employees.

Four of the locations included in the sale are in Scotland, comprising Bishopbriggs, Dumbarton, Dumfries, and Edinburgh – Hermiston Gait. The remaining 20 Scottish stores will close down.

Carpetright is a UK retail chain selling carpets, flooring and beds and is a subsidiary of Nestware Holdings Ltd 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. The business was also impacted by a cyber attack in April 2024, which had left it unable to trade for a period of time.

This transaction represents the best option available to generate returns for creditors as a whole, under severely limited timescales. A separate agreement was reached between Nestware Holdings Ltd and Tapi Group for the company’s intellectual property (IP) and brand.

The administrators will retain employees at the company’s head office in Purfleet for a short time to support in winding down operations. It is with deep regret that 1,018 individuals employed at sites which were not included in the transaction, and those providing in-home services, have had to be made redundant immediately on appointment.

The administrators are working closely with the Redundancy Payments Service (RPS) to ensure that those affected receive their statutory entitlements as soon as possible. Tapi Group has shown a strong dedication to assisting affected Carpetright employees, by collaborating with other retailers to ensure their job applications receive priority and funding workshops aimed at improving employability skills. The administrators will assist in facilitating this.

For outstanding orders made through stores included in the sale, further guidance can be found on this website. Unfortunately, orders placed with stores not included in the transaction are unable to be fulfilled, and it is recommended that affected customers contact their payment card provider about the possibility of obtaining a refund.

Zelf Hussain, joint administrator, 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.”