Carpetright stores in Edinburgh and the Lothians set to close after retail giant goes into administration
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More than 200 stores around the UK will close, including Edinburgh stores in Newcraighall and Straiton along with its Livingston store. The Hermiston Gait branch will continue to trade. Founded in 1988, Carpetright had 273 UK stores and 1,898 employees.
Tapi Carpets and Floors Limited has acquired the Carpetright brand, intellectual property and 54 Carpetright stores - a move administrators said will save hundreds of jobs. However PwC, the administrators handling the transfer, said: “It is with deep regret that 1,018 individuals employed at sites…have had to be made redundant immediately on appointment.”
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Hide AdIn an online statement PwC advised: “The Company has been hit by challenging trading conditions, predominantly due to changing consumer preferences and a drop in home improvement spending post-pandemic. The business was also impacted by a cyber attack in April 2024, which had left it unable to trade for a period of time.”
They said: “The transaction includes the transfer of 308 employees” which they said represented ‘the best option available to generate returns for creditors as a whole, under severely limited timescales.’
PwC are working with the Redundancy Payments Service (RPS) ‘to ensure that those affected receive their statutory entitlements as soon as possible’. It is understood Tapi Group is assisting affected Carpetright employees by ‘by collaborating with other retailers to ensure their job applications receive priority and funding workshops aimed at improving employability skills’.
Zelf Hussain, joint administrator and partner at PwC UK, said: “Carpetright has fallen victim to challenges facing many retailers, especially those selling big ticket items. The sale of some stores and the brand to Tapi has allowed over 300 jobs to be saved, and gives the Carpetright brand the chance to continue and flourish under its new ownership.
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Hide Ad“However, it is deeply saddening that for the remainder of the workforce there will be redundancies. We are committed to helping those affected and will make sure redundancy claims are processed as quickly as possible. In collaboration with Tapi, we will assist in efforts to help individuals find new jobs elsewhere.
“We know this is an uncertain 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.”
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