Carpetright on brink of collapse with 2,000 jobs at risk amid declining sales
CARPETRIGHT is on the brink of going bust, putting nearly 2,000 jobs at risk.
The retailer, which has been hit by declining sales, has filed notice to appoint administrators.
Sources told The Sun that advisers at PwC realised there was no way of achieving a solvent sale.
One insider called the business “a real mess”.
Carpetright has 272 stores and 1,852 staff across the UK but has been hit hard by the spending squeeze.
The company blamed a cyber attack in April for causing further disruption to the business.
Furniture and homeware sales have slumped across the industry as consumers delay making big purchases and prioritise essential bills.
Filing a notice of intent to appoint an administrator typically gives a business ten days before it officially goes bust, although it can be cut shorter if needed.
During that time Carpetright will continue to trade while a rescue buyer is sought.
Kevin Barrett, boss of Nestware Holdings the parent company of Carpetright, said: “We have begun promising conversations with interested parties that are moving in the right direction.”
Carpetright’s demise comes as DIY chain Wickes plans job cuts.
It is understood the retailer has put 500 staff into consultation with plans to axe about 200 kitchen and bathroom consultants.
£ LIFT A BOOST
THE pound has risen to its highest level in more than two years, in an early boost to the new government.
Sterling rose by 0.4 per cent against the dollar yesterday to the $1.30 level.
Investors welcomed political stability and figures showing the UK is back in growth.
Traders bet US interest rates will be cut.
PENSIONS POP
A TECH boss who has sold to the Japanese has blamed lack of backing from British pension funds.
Nigel Toon hit out after his Bristol-based chip-maker Graphcore was snaffled by Japan’s Softbank
The CEO said he turned to overseas investment as the funds “tend to focus on cost rather than growth”.