Accountant PwC has been formally appointed adminstrator of Carpetright with 219 stores across the UK immediately up for grabs.
Carpetright is a British retail chain selling carpets, flooring and beds and is a subsidiary of Nestware Holding. Founded in 1988, it operates across the UK and Ireland. Headquartered in Purfleet, Essex, it has 273 stores and 1,898 employees.
PwC joint administrators Zelf Hussain, Rachael Wilkinson and Peter Dickens said the chain had been hit by challenging trading conditions, predominantly due to changing consumer preferences and a drop in home-improvement spending post-pandemic. It said the business had also been hit by a cyber attack in April 2024, which had left it unable to trade for a period of time.
As reported, the joint administrators completed a sale of 54 stores and two logistics hubs to CWHP, part of the Tapi Group. The transaction includes the transfer of 308 employees. PwC said the transaction represents the best option available to generate returns for creditors as a whole, under severely limited timescales.
The remaining 219 stores have been closed with immediate effect, and the company’s head office will be open for a short time to support the winding down operation.
Jeevan Karir, managing director of Tapi Carpets & Floors Limited said in a statement: “Our goal, initially, was to try 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.
"We then turned ourselves to trying to save a number of stores whilst being mindful of how the Competition authorities would look at any deal. So, we arrived at 54 stores and 2 supporting warehouses. All of which are exceptional and that we’d be proud to have as part of the Tapi family.”
Jonathan de Mello, retail consultant and founder of JDM Retail, said the biggest reason for Carpetright's difficulties had in fact been rival Tapi.
"The rise of Tapi was the biggest impact on the business. Tapi knew where Carpetright did well and opened nearby and competed on price. There was significant attrition.
"Carpetright had a little bit of a positive blip during COVID from household improvements. But when the cost of living crisis hit things reverted to normal. There is some irony then that Tapi has bought the [intellectual property] and some specific stores."
In terms of the 219 closed stores, de Mello says that while there will be an initial impact on retail parks and high streets "paradoxically it is unlikely to be a bad thing" for many landords.
"Carpetright was already underperforming and asking for concessions. It will give landlords the opportunity to let the space to an occupier that spends more or rent, or they will be able to split the units into multiple food and beverage units alongside a smaller retail tenant. There could be a significant increase to rental performance as the market, particularly on retail parks is strong. In general it should be a good thing in the medium term and landlords have been aware of the Carpetright issues for some time."
De Mello says the wider retail park sector is benefiting from a "replacement cycle" for products bought before the cost of living crisis, where people are now looking to upgrade laptops and furniture.
"Currys is a good example of this. Business rates have come down a bit too, and inflation is now low and interest rates should come down. This will see the housing market improve, which ultimately drives consumer spending in retail parks."
Nick Turk, director, out-of-town retail agency at Colliers, says the out of town retail market has been struggling with a lack of supply for some time, with average vacancy rates at around 5% across the country, but nearer to zero in many centres.
"This has resulted in a lack of market activity, and many retailers who want to expand being unable to locate vacant properties. However, this was before the announcement from Tapi that they will be closing about 200 Carpetright stores and only keeping 54. Whilst it’s always a shame to see a major retailer shut up shop, the sudden availability of these 200 stores will provide much needed supply to the sector allowing a variety of retailers such as gyms, pet shops and some furniture suppliers to expand their portfolios. I predict a busy few days and weeks as landlords and tenants agree new deals which – in all probability – will see rents increase, unlocking some years of rental inertia.”
The transferred stores, plus the two warehouses, are:
- Unit 1F, Pipps Hill Retail Park, Basildon
- Unit F, Ravenside Retail Park, Kingsbury Road, Erdington, West Midlands
- Strathkelvin Retail Park, Low Moss, Bishopbriggs, Strathclyde
- Unit 1, Kingswood Industrial Estate, Aldermoor Way, Bristol
- Camborne Retail Park, Trevenson Road, Camborne, Cornwall,
- 85, Camden Road, Camden, London
- St Stephens Way, Carmarthen
- 164, Stockport Road, Corner Of Councillor Lane, Cheadle, Greater Manchester,
- 2AB Wheatbridge Rd, Chesterfield, Derbyshire
- Portfield Retail Park, Westhampnett, Chichester, West Sussex,
- Bath Road, Chippenham, Wiltshire
- 168-170, High Street, Clapham, London
- Unit 5, Airport Retail Park, Coventry
- Westmorland Retail Park, Station Road, Cramlington, Northumberland
- 234, Purley Way, Croydon, Surrey
- Unit 6, St James Retail Park, Glasgow Road, Dumbarton
- Dumfries Retail Park, Glasgow Road, Dumfries & Galloway, Dumfries
- 419, Upper Richmond Road, Ground And First Floor, East Sheen, London
- Unit 4, Hermiston Gait Retail Park, Cultins Road, Edinburgh, Lothian
- 120, High Street, Epsom, Surrey
- Unit 8, Solartron Retail Park, Farnborough, Hampshire
- Unit 8A, Friern Bridge Retail Park, Pegasus Way, Friern Barnet, London
- Sussex Gate Retail Development, Haywards Heath, West Sussex
- Unit 3, Apsley Mills Retail Park, London Road, Hemel Hempstead, Hertfordshire
- Hereford Retail Park, Newton Road, Hereford, Hereford & Worcester
- Knavesbeech Way, Loudwater, High Wycombe, Buckinghamshire
- Holloway Road, Holloway, London
- 182 Old Shoreham Road, Hove, East Sussex
- Anglia Park, Bury Road, Ipswich, Suffolk
- Sunnycliff Retail Park, Mellishaw Lane, Lancaster, Lancashire
- Unit 4, Abbey Retail Park, Savins Mill Way, Leeds, West Yorkshire
- Aylesford Retail Park, London Road, Aylesford, Kent
- Unit 7, Portland Retail Park, Mansfield, Nottinghamshire
- Shannon Corner Retail Park, pff Burlington Road, New Malden, Surrey
London Road, Newbury, Berkshire - Newmarket Retail Park, Oaks Drive, Newmarket, Cambridgeshire
- Unit 5, Coast Road Retail Park, Norham Road, North Shields
- Unit 3B, Sprowston Retail Park, Salhouse Road, Norwich, Norfolk
- Boulevard Retail Park, Peterborough, Cambridgeshire
- Unit C, Marsh Mill Retail Park, Longbridge Road, Plymouth, Devon
- Wellington Road, Southampton, Hampshire
- Unit 5, Portrack Lane, Stockton On Tees
- Great Western Way, Swindon, Wiltshire
- Broad Street, Teddington, Middlesex
- Spitfire Retail Park, Bradley Road, Trowbridge, Wiltshire
- Treliske Retail Park, Tresawls Road, Truro, Cornwall
- Unit A, Armstrong Retail Park, Washington, Tyne & Wear
- 87, High Street, West Wickham, Kent
- Unit 4, Flowerdown Retail Park, Weston-Super-Mare
- Unit 3A, Jubilee Retail Park, Weymouth, Dorset
- 1430, High Road, Whetstone, London
- 53 Plough Lane, Wimbledon, London
- Unit 3, Lion Retail Park, Oriental Road, Woking, Surrey
- Houndstone Retail Park, Off Western Avenue, Yeovil, Somerset
- Unit 3 Hook Rise South, Chessington (warehouse)
- Unit 9, Commerce Park, 19 Commerce Way, Croydon (warehouse)