MORE than 50 stores and the Purfleet on Thames HQ and distribution centre of carpet company Carpetright will close after a deal was announced between the company and its biggest rival Tapi.

It was announced last week that Carpetright was in serious financial trouble.

And yesterday (Monday, 22 July) it went into administration. Zelf Hussain, Rachael Wilkinson, and Peter Dickens from PriceWaterhouseCooper (PwC) were appointed as joint administrators. 

On appointment, the joint administrators completed a sale of 54 stores and two logistics hubs to the Tapi Group, a move which Tapi says will save 308 jobs.

The West Thurock Carpetright store is set to close.

However, the deal will result in 1,018 job losses across Carpetright's head office in Purfleet and its remaining 218 stores across the UK. One of those set to close is the Kakeside Carpetright store on Weston Avenue.

Administarors said it will retain employees at the company's head office for a short time to support in winding down operations.

Tapi, which was founded in 2014 by Martin Harris, the son of Carpetright founder Lord Harris of Peckham – who is also a shareholder, said it will temporarily close the 54 stores for a couple of days whilst it updates the ordering, telephone lines and email system, which will all be out of action until they re-open.

The retailer said that saving the entire business was "unviable" as Carpetright had been materially loss-making for a number of years and had racked up "significant debt".

Tapi managing director Jeevan Karir said: "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.

PwC joint administrator Zelf Hussain added: "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."

Advice from the government by those affected can be found via this link.