Carpetright - Case Update

Zelf Hussain, Rachael Wilkinson and Peter Dickens of PwC have provided a positive update on their administration of carpet and flooring giant Carpetright, sharing that they have been able to secure the sale of dozens of stores since initially announcing a pre-pack sale to rival Tapi Carpets.

Carpetright entered administration on 22 July after facing challenging trading conditions predominantly due to changing consumer preferences and a drop in home improvement spending post-pandemic.

Immediately on their appointment, the joint administrators completed a pre-pack sale of the Carpetright brand, intellectual property, 54 stores and two warehouses to rival Tapi Carpets, saving 300 jobs. This left 211 stores to be closed, leaving about 1,000 employees facing redundancy.

Since that time, the joint administrators have successfully completed the sale of a further 45 stores to a number of interested parties, including 19 stores to Bensons for Beds. In each case, the administrators granted the buyers a licence to occupy the premises, with a view to agreeing a long term occupation. It is hoped that these transactions will create future employment opportunities for former Carpetright employees.

The joint administrators’ proposals can be found HERE. They have been assisted by Travers Smith and Hilco.