Tapi to buy Carpetright in rescue deal but more than 1,000 jobs face axe | BreakingNews.ie

Carpetright is set to be bought in a rescue deal by rival Tapi, but more than 200 stores are expected to be shut and more than 1,000 jobs cut.

Flooring retailer Tapi has agreed to buy the Carpetright brand, intellectual property, 54 stores and two warehouses in a pre-pack administration deal.

The deal will also save more than 300 current jobs at Carpetright.

However, the deal will not save the majority of the business.

Carpetright has seven stores in the Republic of Ireland and two stores in Northern Ireland. It is as yet unclear what the development will mean for those outlets or their staff.

Carpetright filed a notice to appoint administrators earlier this month, after struggling in the face of weaker demand and a major cyberattack in April.

The company employed 1,852 people and operated 272 stores before entering insolvency.

Tapi was founded in 2015 by Lord Harris of Peckham, who also founded Carpetright. He sold all his stock in Carpetright in 2014.

Tapi has grown rapidly in recent years and runs about 175 shops across the UK.

Carpetright owner Nestware Holdings had been working with advisers from PwC in order to secure a rescue deal.

Nestware chief executive Kevin Barrett said: “Our focus over the last week has been to secure external investment to ensure job security for a number of our Carpetright colleagues up and down the country.

“Whilst we succeeded in finding a buyer, the deal is limited to a select number of stores rather than the business as a whole and will sadly impact a large number of colleagues and staff.

“We have tried everything to turn Carpetright around and I’m truly sorry that we were unable to save more jobs.”

Recently, Carpetright has suffered from weaker demand for carpets as homeowners shifted towards hard flooring as well as a major cyber attack in April which halted trading.

It said earlier this month that the cyber attack’s impact on sales affected efforts by the company to restructure its operations in recent months.