Carpetright files for administration

Carpetright, founded in 1988, has been the latest company to face the consequences of financial struggles by filing for administration this past week after it was put up for sale two weeks ago. The flooring and carpet retailer is now facing losing its 272 stores and 1,852 jobs.

Before this application, Teneo were hired to organise a restructuring plan, with plans to cut over 25% of its staff at their head office. However, these appears to have been unsuccessful so far.

PwC (PricewaterhouseCoopers) has been appointed as its administrators to work out how to bring the company back to trading abilities. This could be done through a company voluntary arrangement, which could cause problems for its creditors, including landlords, suppliers and customers alike. 

The application was made at the High Court. This now gives PwC roughly 10 days to plan either for a last minute buyer, or to enter into a plan to protect the company’s future and prevent insolvency. 

The company faced a drastic cyberattack in April that has shifted customer interest elsewhere. It appears that this may have been detrimental to the future existence of the company.