Carpetright, one of the UK’s largest flooring retailers, is on the brink of collapse, putting 1,852 jobs on the line.
The financially troubled company has filed a notice of intention to appoint administrators.
This move typically grants up to 10 days to avoid insolvency.
Carpetright said it remains committed to seeking a reprieve and will continue trading from its stores and online.
The company’s parent, Nestware Holdings, is working to secure additional investment to ensure Carpetright’s long-term viability.
However, the company hinted that some job losses might be unavoidable.
Nestware CEO Kevin Barrett said: “We remain focused on securing external investment to ensure as few customers and colleagues are impacted as possible.
“They are our main priority and we are taking all appropriate action to make sure they are informed and supported through this process.
“We have begun promising conversations with interested parties that are moving in the right direction, encouraging us that Carpetright has a viable future.”
In May, it was revealed Carpetright was reducing its head office staff in Essex by over 25 percent to save cash.Â
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The company has faced a prolonged downturn in trading, partly due to weak consumer confidence amid the cost-of-living crisis.
Since COVID-19, this crisis has affected household budgets for large purchases.Â
“We remain focused on securing external investment to ensure as few customers and colleagues are impacted as possible”
Additionally, Carpetright has been challenged by strong competition from rivals.
The firm suffered a cyber attack in April that further impacted trade.
Founded by Lord Harris of Peckham in the late 1980s, Carpetright closed dozens of stores in 2018 as part of a plan to manage losses.
Despite these efforts, the company’s financial difficulties have persisted, leading to a critical situation.
