Floor Room stores close and 200 jobs lost after Carpetright collapses

Floor Room stores close and 200 jobs lost after Carpetright collapses

A flooring company dependent on insolvent carpet retailer Carpetright has been forced into insolvency, resulting in the loss of 200 jobs across the UK.

The Floor Room, which operated in 34 John Lewis department stores, appointed PwC insolvency administrators.

Its concessions and a flagship store on London’s Tottenham Court Road were immediately closed.

As a result of the insolvency, 196 employees were laid off in the branches, at the head office in Purfleet, Essex, and in the provision of home services, PwC said.

Some staff in Purfleet will be retained for a short period to help wind down the company’s operations.

Adam Seres, joint administrator at PwC UK, said The Floor Room was “dependent on its sister company Carpetright for much of its trading infrastructure” and the company’s “financial position made it impossible for the company to continue as a going concern”.

The Floor Room is owned by Nestware Holdings, a flooring group that was also the parent company of Carpetright before its collapse.

A Carpetright businessA Carpetright business

The Floor Room is the sister company of Carpetright, which appointed liquidators in July (Danny Lawson/PA)

Carpetright filed for bankruptcy last month after struggling with weaker consumer demand and falling victim to a major cyberattack in April.

The company employed 1,852 people and operated 273 stores across the UK before filing for bankruptcy.

Carpetright’s brand, intellectual property, 54 stores and two warehouses were bought by rival Tapi weeks later, while Bensons for Beds later announced the purchase of 19 stores.

But the failure ultimately led to the closure of over 200 more branches and the immediate dismissal of 1,018 employees.

Customers of The Floor Room who are waiting for orders they have placed or who have paid a deposit have been informed that they will not receive a refund due to the immediate closures.

PwC recommends that customers check with their payment card provider about the possibility of a refund.

The Floor Room employed 201 people and operated in John Lewis stores across the UK, selling and fitting high-quality flooring and home furniture.

Mr Seres added: “We sincerely regret that this outcome had to lead to the dismissal of the majority of employees.

“We feel committed to those affected and will do everything in our power to ensure that the severance pay applications are processed as quickly as possible.

“We know this is a worrying time for many affected and would like to thank all employees for the support they have given the company during this difficult situation.”

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