Major retailer on the brink of administration putting 272 stores at risk (2024)

A MAJOR retailer has filed a notice to appoint administrators, putting all of its 272 stores at risk.

It comes after The Sun exclusively reported this morning that Carpetright was planning the move, which puts 1,852 UK jobs at risk.

The firm says it is working to finalise additional investment to secure the long-term future of the company.

Carpetright, one of the country's biggest floor-covering retailers, said the decision was made following "financial pressures" after a software attack that disrupted trade in April.

This then subsequently impacted plans to restructure and has resulted in the company seeking a period of protection while the sale negotiations continue.

Kevin Barrett, CEO of Carpetright's owner Nestware Holdings, said: "We remain focussed on securing external investment to ensure as few customers and colleagues are impacted as possible.

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"They are our main priority and we are taking all appropriate action to make sure they are informed and supported through this process."

Mr Barrett added that the company has begun "promising" conversations with interested parties regarding the potential sale.

He said these conversations are "moving in the right direction, encouraging us that Carpetright has a viable future".

The Times also reported earlier this week that Carpetright had been put up for sale, with firm PricewaterhouseCoopers (PwC) advising.

Carpetright will continue to trade as normal during this process.

But it puts fresh doubt over the long-term future of the chain, which has 272 stores and employs 1,852 people.

A sale of the business could involve a buyer stepping in to save all, or just parts of the company.

Furniture andhomewaresales have slumped across the industry as consumers delay making big purchases and prioritise essentialbills.

The retailer, founded by Lord Harris of Peckham in 1988, was taken off the stock market in 2019 by its biggest investor, Meditor.

However, the Harris family became one of Carpetright’s biggest challenges as son Martin Harris launched a rival flooring retailer, Tapi, which increased competition.

The icon British chain, which was founded in 1988,brought in restructuring experts Teneoearlier this year to look at cost-cutting measures.

A lack of consumer spending in recent years and a rise in competition are thought to have caused problems for the brand.

In April, a spokesperson for Carpetright told The Sun it was "not in planning" for another company voluntary arrangement (CVA), which it last filed in 2018 and resulted inthe closure of 92 sites.

What else is happening to homeware chains?

Thenewstoday follows a tricky time for home improvement chains, both large and small.

It comes as shoppers have been cutting back on spending following thepandemic.

Plus the recent turmoil in thehousing markethas meant that homeowners aren't as focused on DIY projects as they once were.

In the spring, Kingfisher, which owns both B&Q and Screwfix, revealedannual profits slumped by more than a quarter.

The company reported a 25.1% drop in underlying pre-tax profits to £568million for the year to January 31, 2024.

Window and door specialist Everest called inadministratorsin April leaving customers in the dark about their orders

Last year, the grouphad previously cautioned profits would slip after a 36% drop in pre-tax profitsfrom £1billion to £611million in the 12 months to January 2023.

RivalWickes, also reported a 31% fall in profits to £52million on flat revenues of £1.55billion for 2023.

Windows and doors companySafestyle collapsed into administration in October last year.

The company has a manufacturing site in Wombwell, nearBarnsleyand 42 sales branches and depots across the country.

What other chains have collapsed in recent years?

We have seen several big losses in the last few years including popular discounterWilko.

Following several failed rescue bids, fellow bargain chainThe RangeboughtWilko's name and intellectual property.

CDS Superstores, trading asThe Rangeand Wilko,relaunched the latter's websitebefore relaunching stores as well.

Fans of Paperchase were devastated when theretailer disappeared from the high streetin April last year.

It fell into administrationin February after failing to find a buyer.

This led to theclosure of all of its 134 shopsincluding concessions stands inNextand Selfridges, with 900 job losses.

Supermarket giantTescobought the rights to the brand andannounced earlier this monththat it would be returning to hundreds of stores.

Healthand beauty chainThe Body Shop fell into administrationearly in 2024 and announced the closure of many of its 200 stores.

Almost 500 staff are set to lose theirjobsafter 75 stores were earmarked for closure.

Since then, it's been confirmed that Aurea Holding, an investmentbusiness, is in talks to acquireThe Body Shopafter beating out competing bidders in an auction process.

Ted Baker fell into administrationin March 2024 too, with 15 storeshaving shutby April 19.

In April, it was reported that Nextand theFrasers Group were reportedly eyeing up some of the ailing retailer's stores.

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M&Co fell intoadministrationin 2022 but was expected to make a surprise comeback in autumn 2023.

Fellow retailerand intellectual property after the chain went into administration in December 2022.

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