A COMPANY with stores in Scotland has collapsed into administration with a number of job losses expected.
Administrators have been appointed to the Floor Room Ltd, a sister firm of Carpetright, which entered administration on July 22.
The flooring specialist mainly operates as concessions within department stores, with one in John Lewis at Glasgow's Buchanan Galleries as well as in the St James Centre in Edinburgh.
The Floor Room has 201 employees, and while some have been kept on to help administrators, the remaining 196 will be made redundant.
It depended on Carpetright for many essential support services and was impacted by a cyber attack in April 2024 and the subsequent insolvency, which left it unable to trade using its existing business model.
Despite the best efforts of all stakeholders to find a solution, the company was left with no option but to appoint administrators.
Administrators Adam Seres, Zelf Hussain, and Peter Dickens of PwC are working closely with the Redundancy Payments Service to ensure that those affected receive their statutory entitlements as soon as possible.
All outstanding orders will not be fulfilled, and customers are urged to contact their payment card provider about the possibility of obtaining a refund.
Seres said: “The Floor Room depended on its sister company, Carpetright, for much of its trading infrastructure.
"Following the latter’s insolvency, management worked to find an alternative solution to preserve the Floor Room’s business as a going concern. However, its financial position meant that it was impossible for the business to continue trading.
“It is with sincere regret that this outcome has had to result in the redundancies of the majority of employees.
"We are committed to helping those affected and will work hard to ensure redundancy claims are processed as quickly as possible.
"We know this is an unsettling 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.”
A John Lewis spokesperson said: "The Floor Room, which runs a carpet and flooring service inside a number of John Lewis stores, has gone into administration.
"As the Floor Room is not owned by John Lewis, we are now working urgently to understand what this means for The Floor Room’s customers and colleagues in what is a rapidly evolving situation.
"We know that this will be very worrying for customers of the Floor Room. If anyone has an outstanding order with the Floor Room, we are committed to doing everything in our power to help and support them. More information is available from the administrators’ website on www.pwc.co.uk/thefloorroom."
