Job losses as Rochdale Carpetright closes
Date published: 23 July 2024
The Rochdale Carpetright store on Whitworth Road
Rochdale's Carpetright store has closed, resulting in job losses for its staff, following the company's entry into administration.
Although some Carpetright stores have been rescued by the Tapi Group, the Rochdale branch on Whitworth Road was not selected in the acquisition. Consequently, it has permanently shut its doors, alongside approximately 200 other stores nationwide.
Carpetright, a British retail chain specialising in carpets, flooring, and beds, is a subsidiary of Nestware Holdings Ltd. Established in 1988, the company operates across the UK and the Republic of Ireland. Headquartered in Purfleet, Essex, it manages 273 stores and employs 1,898 people.
The company says that it has faced challenging trading conditions, primarily due to shifting consumer preferences and a decline in home improvement spending post-pandemic. Additionally, a cyber attack in April 2024 severely impacted its ability to trade for a period.
Administrators are collaborating with the Redundancy Payments Service (RPS) to ensure affected employees receive their statutory entitlements "as soon as possible."
The Tapi Group is working with other retailers to prioritise job applications from affected staff and is funding workshops to enhance employability skills.
For customers with outstanding orders from stores included in the sale, further guidance is available on the Carpetright website. Unfortunately, orders placed with stores not included in the transaction cannot be fulfilled. Affected customers are advised to contact their payment card provider to seek a refund.
Zelf Hussain, joint administrator, said: "Carpetright has fallen victim to challenges facing many retailers, especially those selling big-ticket items.
"A combination of factors, including a significant reduction in consumer spending due to cost of living pressures, lower home sales, and a debilitating cyber attack, made it impossible for the business to continue in its current form.
"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.
"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 ensure 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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