Jersey's Carpetright store not included in rescue deal

Thursday 25 July 2024

Jersey and Guernsey's Carpetright stores and their employees have fallen victim to the company's financial troubles – with the island stores not included in a rescue deal.

Tapi Carpets and Floors Limited this week announced it had bought 56 of Carpetright's sites - covering 54 shops and two logistics hubs – but the Channel Islands and Isle of Wight were left off the list.

Carpetright - a British retail chain founded in 1988 selling carpets, flooring, and beds, as a subsidiary of Nestware Holdings Ltd - had owned 273 stores and employed 1,898 people.

1,018 of those people have lost their jobs.

Pictured: The announcement shared on the Carpetright website.

For those employees who have lost their jobs, including an unconfirmed number in the Channel Islands, PwC said 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 has also pledged to collaborate with other retailers "to ensure their job applications receive priority and funding workshops aimed at improving employability skills".

It is unclear at this time whether either of these assurances will benefit the employees who have lost their jobs in Jersey and Guernsey.

For any customers with outstanding orders made through the local Carpetright store, the administrators have said they won't be fulfilled.

"...it is recommended that affected customers contact their payment card provider about the possibility of obtaining a refund," PwC advised.

CLICK TO ENLARGE: Tapi's advice to customers who have recently made purchases through Carpetright. 

Zelf Hussain, Rachael Wilkinson and Peter Dickens of PwC have been appointed as Joint Administrators of Carpetright Ltd.

The sale of 56 sites to Tapi secured the jobs of 308 people.

In a statement, PwC said some of those people are employed at the Carpetright's Head Office in Purfleet and will be involved in winding down operations.

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.”

Pictured: The Jersey Carpetright store was based on La Grande Route de St Jean.

Jeevan Karir, Tapi's Managing Director, said the initial goal was to save "all" of Carpetright.

"However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable. The business has been materially loss-making for a number of years and it has significant debt held by the owner," he said.

Chief Executive of Nestware Holdings, the Meditor-controlled group that owns Carpetright, Kevin Barrett, commented: "We have tried everything to turn Carpetright around and I'm truly sorry that we were unable to save more jobs."