Carpetright customers have been given a warning to take action following the collapse of the company, which has left nearly 21,000 customers out of pocket for unfulfilled orders amounting to close to £8 million. Despite reports from directors stating this figure, insiders suggest that the actual debt owed may be much higher. In July, Carpetright went into administration, resulting in the closure of 273 stores and potential redundancy for approximately 1,500 staff members. The majority of customers are unlikely to receive any refund.
The company faced challenges due to weaker consumer demand and a cyber attack in April before ultimately entering insolvency. The sale of some stores and the brand to competitor Tapi saved over 300 jobs, but more than 200 other stores closed, leading to immediate redundancy for over 1,000 employees. Trade creditors, including suppliers and carpet fitters, are owed a substantial £226 million, with Nestware alone waiting for £175 million.
Customers who are owed nearly £400 each, on average, are advised to claim against their banks if they paid with a card. Administrators have confirmed that most outstanding orders will not be fulfilled. Orders made online or at the stores set for closure will not be honoured. To seek refunds, customers who paid by credit card can utilise Section 75 of the Consumer Credit Act, which offers protection for purchases over £100.
Tapi, the company that acquired some of Carpetright’s assets, including stores and warehouses, was established in 2015 by Lord Harris of Peckham, who had previously founded Carpetright. Despite efforts to save the entire business, it was deemed unviable, resulting in the closure of multiple stores. Nestware, another company affected by the collapse, secured external investment to protect certain jobs but could not save the business entirely.
Despite challenges, Carpetright continues to face, customers who paid with credit cards have recourse to claim refunds under Section 75 of the Consumer Credit Act. As the repercussions of the company’s collapse unfold, affected parties are urged to take appropriate action to seek redress for their losses.