Major homeware brand with 274 locations up for sale ‘putting stores at risk of closure’
A MAJOR homeware brand with 274 branches across the UK has been put up for sale by administrators leaving stores “at risk of closure”.
Carpetright has drafted in accounting firm PricewaterhouseCoopers (PwC) to launch a formal sale process.
It is not yet known whether any potential bidders have expressed an interest to buying out the retailer, The Times reports.
However, sources have warned shops could close as part of the sale process, although this is not guaranteed to happen.
The appointment of PwC comes after Carpetright brought in restructuring experts Teneo to look at cost-cutting measures.
It was reported in April to be looking at several cost-saving measures.
One of the UK’s largest floorcovering retailers has struggled in recent months due to competition from rivals such as Tapi.
Tapi was founded by Martin Harris, the son of Lord Harris of Peckham, the Carpetright founder.
The retailer has opened dozens of shops nearby to Carpetright branches.
Carpetright reported revenues of £372.6 million in the 14 months to January 1, 2022, compared to £493.2 million in the 18 months to October 31, 2020.
According to Companies House, underlying losses before tax for the same period were £23.4million – down from £53million.
In April, a spokesperson for Carpetright told The Sun it was “not in planning” for another company voluntary arrangement (CVA), which it last filed in 2018.
The move resulted in the closure of 92 sites.
A CVA is a way for a business to restructure but continue to keep trading, but typically it closes some stores and negotiates rent costs down.
Carpetright opened its first shop in east London back in 1988 by the boss Philip Harris, who stepped down in 2014.
It was delisted from the London Stock Exchange in 2019 when it was bought by Meditor.
The hedge fund had bought almost 30% of the company’s shares and more than £40million of its debts the year before.
The Sun has asked Carpetright for a comment.