Tapi has acquired struggling Carpetright and brought 54 of its stores out of administration, but the deal comes with significant job losses.
The acquisition includes Carpetright’s intellectual property, two warehouses, and 54 stores.
Tapi plans to temporarily close them for a few days to update systems like ordering, telephone lines, and email.
This move will preserve 308 jobs within the acquired store.
However, it will also result in 1,018 job losses across Carpetright’s head office in Purfleet and its remaining 218 stores in the UK.
PwC, the administrators handling Carpetright’s affairs, will retain some head office staff briefly to help wind down operations.
The company has faced ongoing financial difficulties, including significant debt and years of losses, making a complete rescue unfeasible.
Tapi’s acquisition was designed to limit market disruption while adhering to Competition and Markets Authority (CMA) guidelines.
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Tapi managing director Jeevan Karir 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 two supporting warehouses.
“All of which are exceptional and that we’d be proud to have as part of the Tapi family.”
PwC will work to process redundancy claims quickly and assist affected employees in finding new job opportunities.
Carpetright had sought protection earlier this month as it struggled with heightened competition and reduced demand, leading to PwC’s appointment to find a buyer.
Tapi emerged as the sole bidder offering a viable rescue plan to prevent a complete liquidation.
