Barnstaple Carpetright store could close with job losses as company faces administration

Jobs in Barnstaple could be under threat after it was announced flooring retail giant Carpetright looked likely to go into administration.

The retailer announced today (Friday) it had filed a notice of intention to appoint administrators while it tries to secure extra funding, putting 1,800 jobs at risk across the country.

Advisory firm PricewaterhouseCoopers (PwC) has been lined up, but not yet appointed, to handle the administration.

Carpetright said it had ‘begun promising conversations with interested parties’ and its 272 stores would remain open for now.

The retailer has several Devon stores including at Roundswell Retail Park in Barnstaple as well as Exeter, Tiverton, Torquay and Newton Abbot.

Kevin Barrett, boss of Nestware Holdings, which owns Carpetright and several other retailers, said its restructuring plans were hit by a slump in April trade caused by a cyber-attack.

He said: “This has resulted in the company seeking a period of protection whilst sale negotiations proceed.”

He added its main priority was ensuring that ‘as few customers and colleagues are impacted as possible’.

The company has been given 10 days' breathing space to try to find a buyer.

Six years ago, it went through a form of insolvency proceedings to cut costs.

At the time, it was forced to close 81 of its stores after reporting a full-year loss of over £70million.

News of the impending collapse came a day after it was reported the company had put itself up for sale.

Carpetright was founded in 1988, with its first store opening in Canning Town, East London.