Jobs lost as Leicestershire Carpetright stores to close after company collapses

Two Leicestershire Carpetright stores are to close after the company went into administration. More than 1,000 UK staff have lost their jobs after hundreds of branches were left out of a last-minute rescue package.

The Carpetright stores, in Leicester’s Abbey Retail Park and Market Harborough’s Rockingham Industrial Estate, are among 213 Carpetright casualties that failed to be saved by Tapi Group, which bought 54 UK branches. The deal also includes two warehouses but excludes the flooring company’s head office in Purfleet, Essex, which is now ceasing all operations.

It is not clear how many jobs have been lost at the two Leicestershire branches, but administrators PwC said 1,018 staff had been made redundant “with immediate effect” across the 213 stores. 308 employees were retained as part of the Tapi deal.

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Carpetright’s demise comes after the flooring company was hit by a series of “challenging” trading conditions, according to PwC. They said a shift in consumer preferences and a drop in spending on home improvements after the pandemic contributed to the financial woes.

A cyber attack on the company in April also left Carpetright unable to trade. Administrators say the 54-store rescue package is “the best option available”, with Tapi also buying Carpetright’s intellectual property (IP) and brand name.

Zelf Hussain, joint managing director, said: “Carpetright has fallen victim to the challenges many retailers face, particularly those selling high-ticket items. The sale of stores and the brand to Tapi has saved over 300 jobs and gives the Carpetright brand the chance to continue and thrive under its new ownership.

“However, it is deeply saddened that there will be redundancies for the rest of the workforce. We are committed to helping those affected and will ensure that redundancy claims are processed as quickly as possible.”

A closing date for the Leicestershire stores has not been confirmed. PwC said it was now working with Tapi to help affected staff “find new jobs elsewhere”.

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