Carpetright has filed a notice to appoint administrators in a move that could result in job losses and store closures.
The flooring specialist said it was seeking a “period of protection” whilst it works to finalise additional investment to secure the long term future of the company.
It blamed financial pressures following a software attack that disrupted trade in April and subsequently impacted plans to restructure on its decision to file the notice and put administrators as PwC on standby.
The notice of intention gives Carpetright ten days protection as it continues to look for a buyer. The retailer, which has 272 stores and employs 1,852 people in the UK, said it will continue to trade during this process.
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It comes as The Times reported the retailer drafted in advisers at PwC to launch a formal sale process, which according to sources, is likely to be completed via a pre-pack deal or company voluntary arrangement.
It is understood that administrators are in talks with The Floor Room, which is owned by Carpetright’s parent company Nestware Holdings and has a partnership with John Lewis.
Tapi Carpets, which was founded by Carpetright founder Lord Harris’ son Martin Harris, is also said to have expressed an initial interest in the retailer’s stores and supplier base.
Kevin Barrett, CEO of Carpetright’s parent company Nestware Holdings, said: “We remain focussed on securing external investment to ensure as few customers and colleagues are impacted as possible.
“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.”
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