Carpetright has filed a notice of intention to appoint administrators, putting PwC on standby, while it tries to secure extra funding.
In April, the retailer was subject to a software attack which not only disrupted trade but also impacted plans to restructure.
Carpetright currently has 272 stores with 1,850 UK jobs at risk. Parent firm Nestware Holdings stressed it was still trying to finalise additional funds.
“We remain focussed on securing external investment to ensure as few customers and colleagues are impacted as possible,” explained Kevin Barrett, CEO of Nestware Holdings.
“They are our main priority and we are taking all appropriate action to make sure they are informed and supported through this process.
“We have begun promising conversations with interested parties that are moving in the right direction, encouraging us that Carpetright has a viable future.”
There had been previous reports of pre-pack deal or company voluntary arrangement, with administrators in talks with The Floor Room. The London-based retailer is also owned by Carpetright’s parent company Nestware Holdings, and has a partnership with John Lewis.
Furthermore Tapi Carpets, which was founded by Carpetright founder Lord Harris’ son Martin Harris, has expressed interest in the retailer’s stores and supplier base.
This is not the first occasion that Carpetright has looked at a potential acquisition. In October 2019, the retailer hoped a proposed refinancing – and possible acquisition – by its chief lender would help it to invest in stores and digital offering.
It has also more recently looked to cut more than 25% of its head office staff, putting around 70 jobs at risk. In a £22mn cost saving plan, roles in IT, warehousing and distribution would go.
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