Tapi Carpets has purchased Carpetright's stock and store leases for £3.7 million following the collapse of the flooring chain in July. The acquisition includes Carpetright's intellectual property, two warehouses, and over 20% of its stores, though the deal could not prevent the loss of more than 1,000 jobs.
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Restructuring advisers disclosed the details of this transaction, which was part of two major deals following Carpetright's administration. Tapi Carpets, recognising that rescuing the entire business was impractical due to Carpetright's long-standing financial struggles and significant debt, chose to acquire select assets instead.
The decision to limit the scope of the purchase was influenced by concerns over the Competition and Markets Authority (CMA) and the potential regulatory scrutiny a larger acquisition might attract. Tapi Carpets acknowledged that Carpetright had been financially unviable for several years, which made a full-scale rescue impossible.
While Tapi Carpets' acquisition preserves some of Carpetright's operations, it underscores the broader challenges facing the flooring industry.
Source: www.retailgazette.co.uk