Carpetright is on the brink of appointing administrators as the retail chain rushes to find a buyer, putting nearly 2,000 jobs at risk.
The company, which operates around 270 stores, has filed a notice of intention to appoint administrators in an effort to secure new investment.
Advisory firm PricewaterhouseCoopers (PwC) is set to take on the role.
Kevin Barrett, chief executive of Carpetright owner Nestware Holdings, stated: “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.”
This development follows news earlier this week that Carpetright had put itself up for sale due to cashflow concerns.
Carpetright has suffered from a slowdown in sales, as household financial pressures have led to reduced spending on new floors. Additionally, a cyber attack in April severely impacted its ability to trade.
It has grappled with a protracted downturn in trading.
Carpetright, founded by Lord Harris of Peckham in the late 1980s, closed dozens of stores in 2018 as part of a plan to manage and reduce losses.
In May, Sky News reported that Carpetright, which operates 272 UK stores, was reducing more than 25% of its head office staff in Essex as part of renewed efforts to conserve cash.
The company has been struggling with a prolonged downturn in trading.
The notice of intention to appoint administrators provides ten days of protection, allowing the company to hold talks with potential buyers.
