Carpetright heads towards administration in move that would put all of its 272 stores and nearly 2,000 jobs at risk
12 July 2024, 16:57 | Updated: 12 July 2024, 17:14
More than 1,800 jobs and 272 stores are at risk as major retailer Carpetright is headed towards administration.
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Customers could also lose out with the company no longer accepting refunds after filing a notice of intention to go into administration at the High Court today.
Carpetright's CEO revealed the change in policy in a voice note to staff, The Times has reported.
Kevin Barrett, 54, said the change could cause a "lot of disruption and customers getting nervous” but said the company was committed to ensuring as few customers and staff are affected as possible.
Despite this, customers took to social media to voice their concerns about the company heading into administration.
David Wright posted on X: “I want a refund on my £1,500 carpet as I don't trust you now you have gone bust. I need a company who's still in business.”
PricewaterhouseCoopers (PwC) are potential administrators for Carpetright as the company looks to secure its long-term future after it was revealed earlier this week that it had been put up for sale.
On Friday the company filed a notice of intention to go into administration at the High Court which will give it ten days of protection as it continues to look for a buyer.
This comes amid the declining sales in the furniture and retail industry with consumers hit by the cost-of-living crisis.
The company was also put under increasing financial pressure after being targeted by a 'software attack' in April, according to The Sun.
Hackers targeted the company HQ in Purfleet, Essex, leading to staff and hundreds of customers being affected by a virus with employees unable to access their payroll information.
A source said at the time: “Some staff networks were taken down including the portals that workers use to book time off and look at payslips.
“It happened abruptly and was worrying because customers couldn't get through to helplines.
“Everything at HQ was taken offline as that was the best way to stop the attack spreading to customer data.”
Carpetright was founded by Lord Harris of Peckham in 1988 and was taken off the stock market in 2019 by its biggest investor, Meditor.
Earlier this year, the company brought in restructuring experts Teneo to consider cost-cutting measures.
Kevin Barrett, CEO of Nestware Holdings, said: “We remain focussed 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.”
