CARPETRIGHT has confirmed that 20 of its Scottish stores will close with all staff being made redundant as the business goes into administration.
Tapi Group confirmed the purchase of 54 stores and two logistics hubs from the business, including four locations in Scotland, and will retain all employees in the sale.
The Scottish locations which were bought include Bishopbriggs, Dumbarton, Dumfries, and Edinburgh - Hermiston Gait.
However, 20 other stores across Scotland will close with all jobs lost with those providing in-home services being made redundant immediately, the company has announced.
The Essex-based carpet firm has 273 stores and 1898 employees across the UK.
The company confirmed it was going into administration earlier this month citing “challenging trading conditions” as customer preferences had changed and there had been a significant drop in home improvement spending since the pandemic.
Zelf Hussain, joint administrator, said: “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.”
Jeevan Karir, managing director of Tapi Carpets and Floors Limited, 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.
“The business has been materially loss-making for a number of years and it has significant debt held by the owner.
“We then turned ourselves to trying to save a number of stores whilst being mindful of how the competition authorities would look at any deal. So, we arrived at 54 stores and two supporting warehouses.
“All of which are exceptional and that we’d be proud to have as part of the Tapi family.”
