Carpetright customers are being urged to take action as nearly 21,000 customers are owed close to £8 million in unfulfilled orders after the retailer’s collapse in July. Reports indicate that the actual debt owed could be even higher. Following the administration in July, 273 Carpetright stores closed, leaving around 1,500 employees facing redundancy. Most customers are unlikely to receive a refund for their outstanding orders. Landlord creditors, including major retailers and property companies, are owed a combined total of £148 million.
Carpetright declared insolvency due to struggling consumer demand and a cyber attack earlier in the year. The company was unable to meet VAT and Paye payments which led to its administration. While Tapi acquired some of Carpetright’s assets, including stores and warehouses, over 200 other stores were closed, resulting in immediate redundancy for over 1,000 workers. Suppliers and creditors are owed substantial amounts, with Nestware alone owed £175 million.
Customers who paid with card are being advised to contact their banks for potential refunds. Administrators confirmed that most outstanding orders will not be fulfilled. Section 75 of the Consumer Credit Act 1974 protects credit card payments over £100, allowing customers to claim against the card provider if a retailer fails to deliver goods or services. Debit card customers have alternative refund avenues available to them.
Tapi, founded by Lord Harris of Peckham who previously owned Carpetright, has stated that saving the entire business was unviable. Nestware’s CEO expressed regret over the inability to save more jobs. The company’s struggles were exacerbated by a shift in consumer preferences towards hard flooring and a cyber attack impacting sales.
Carpetright’s collapse and subsequent events highlight the challenges faced by retailers in a changing market. Customers affected by the retailer’s closure are advised to seek recourse through their banks for possible refunds. As the fallout continues, stakeholders are navigating the aftermath of one of the UK’s largest floor covering retailer’s demise.