ABERDEEN workers are among 1,500 staff at Carpetright who will lose their jobs today despite a deal by rival flooring retailer Tapi to save some of its stores.
Tapi Carpets & Floors has acquired the Carpetright brand, its intellectual property, two storage facilities, and 54 retail locations, thereby preserving 308 jobs.
However, the brand’s stores at Kittybrewster and Bridge of Don in Aberdeen are among the 218 stores not included in the deal, and staff will be made redundant either immediately or over the coming weeks.
Jeevan Karir, Managing Director of Tapi Carpets & Floors Limited said; “Our goal, initially, was to try to save all of Carpetright. However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable. The business has been materially loss-making for a number of years and it has significant debt held by the owner. We then turned ourselves to trying to save a number of stores whilst being mindful of how the Competition authorities would look at any deal. So, we arrived at 54 stores and 2 supporting warehouses. All of which are exceptional and that we’d be proud to have as part of the Tapi family.”
He explained that although the agreement will preserve over 300 jobs, additional staff at Carpetright’s main office in Purfleet, Essex, and in some stores, will only be retained temporarily to facilitate the closure of operations.
Carpetright had a workforce of over 1,800 before facing financial difficulties and had 273 stores nationwide.
Just over a week prior, it was reported that Carpetright was on the brink of bankruptcy and was in talks with PwC to appoint them as administrators, as it sought additional financial support.
In a press release on Monday, PwC stated that administrators were in collaboration with the affected employees to ensure they receive their due payments as quickly as possible.
Zelf Jussain, joint administrator at PwC, acknowledged it was a “difficult time” for those affected.
“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,” he said.
“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.”
Scottish Conservative North East MSP Liam Kerr commented: “It’s devastating that Carpetright is to close both of its Aberdeen stores at two prominent retail parks across the city.
“The closures are a huge blow to Bridge of Don and Kittybrewster and will no doubt leave a void at both retail parks.
“My thoughts go to the workers who have been placed in this situation through no fault of their own.
“This is an extremely anxious time for staff and I urge the company to ensure the correct support measures are put in place during this difficult period.”
