Carpetright

Carpetright Limited is one of the largest British retailers of floor coverings and beds. The company is owned by Meditor.

Carpetright Limited
TypePrivate
IndustryRetail
Founded1988
HeadquartersPurfleet, Essex
Number of locations
350 (2019)
Key people
Kevin Barrett (Group CEO)
ProductsCarpets
Websitewww.carpetright.co.uk
New Carpetright Store (2018)
Carpetright in Oxted (2019)
Carpetright in Croydon (2018)

History

The company was established by Lord Harris of Peckham in 1988 when he opened its first shop in Canning Town.[1] It was first listed on the London Stock Exchange in June 1993. In 1999, the company expanded through the acquisition of selected shops from Carpetland and Allied Carpets.[1] It acquired its first operations in Continental Europe in 2002, and in 2005 acquired May’s World of Carpets.[1] In 2007, it added the Storey Carpets business, a firm based in Sunderland, which had 54 stores at the time.[2][3]

Cascade Investment, LLC, the investment vehicle of Bill Gates, acquired a 3% in the company in May 2008.[4] Carpetright expanded again with the purchase of Sleepright UK in 2008.[5] However, in June 2011 it announced significant shop closure plans and that year posted its first loss since 1993.[6]

It was reported on 21 March 2018 that Carpetright was struggling after issuing several profit warnings, and that it was looking at possible shop closures. On 12 April 2018, it was announced that Carpetright would close 92 stores, with a total loss of 300 jobs out of the total workforce of 2,700, as part of restructuring measures.[7][8]

In May 2018, Carpetright secured a £15 million loan to provide short-term working capital.[9] In November 2019, Carpetright announced that its largest shareholder, Meditor, had agreed to purchase the company.[10] A bid of £15.2 million was accepted by the company, amid fears it could not pay off its debt.[11] Carpetright have estimated that the company would need around £80 million to get out of its debt problems. The company’s gross debt was evaluated at £56 million.[12]

According to Carpetright, the rescue deal will help the company complete a turnaround plan in the “very challenging consumer market”.[13] The hedge fund that will acquire the retailer is headed by Talal Shakerchi, the former professional poker player and the former fund manager for Old Mutual.[14] Investec Asset Management backed the bid made by Meditor with more than 11.3 million shares.[12]

Carpetright announced the departure of chairman Bob Ivell in January 2020, as the store returned to private ownership after more than 26 years. Several non-executive directors stood down from the board because of the takeover.[15]

Operations

As of 2022, the company has more than 400 shops.[16] It has expanded into Belgium,[16] the Netherlands,[16] and the Republic of Ireland.[16] It sells a wide variety of beds, mattresses, carpets, laminate flooring, vinyl flooring and rugs.[17]

Marketing

Carpetright announced a new partnership in July 2016 with Lucy Alexander as its brand ambassador.[18]

It was announced in March 2020 that Carpetright would become the new main shirt sponsor for Exeter City F.C. from the start of the 2020/21 season.[19]

References
  1. Carpetright History Archived 18 August 2008 at the Wayback Machine
  2. "Carpet firm to be sold for £20m". news.bbc.co.uk. 2 May 2007. Retrieved 1 March 2022.
  3. "Storey Carpets owner Carpetright agrees Meditor takeover bid". netimesmagazine.co.uk. 15 November 2019. Retrieved 1 March 2022.
  4. Hawkes, Steve (29 May 2008). "Bill Gates piles into Carpetright with 3% stake". The Times. London. Archived from the original on 12 June 2011. Retrieved 29 October 2016.
  5. "Carpetright snaps up Sleepright". 8 December 2008.
  6. "Carpetright reports first ever profits dip since floating in 1993". The Guardian. 13 December 2011. Retrieved 18 March 2017.
  7. "Carpetright to close 92 outlets, shedding hundreds of jobs". theguardian.com. 12 April 2018. Retrieved 19 November 2020.
  8. "Carpetright to axe 300 jobs and close 92 stores in fight for survival". news.sky.com. 12 April 2018. Retrieved 19 November 2020.
  9. Woods, Ben (11 May 2018). "Carpetright secures £15m emergency funding". The Telegraph. ISSN 0307-1235. Retrieved 14 May 2018.
  10. Szajna-Hopgood, Ava (15 November 2019). "Carpetright to be taken over by Meditor". Retail Gazette. Retrieved 18 November 2019.
  11. "Carpetright accepts cut-price £15m rescue deal from Meditor". CityAM. 15 November 2019. Retrieved 5 December 2019.
  12. "Meditor scores win as shareholder backs its bid for Carpetright". Evening Express. 6 November 2019. Archived from the original on 5 December 2019. Retrieved 5 December 2019.
  13. Butler, Sarah (15 November 2019). "Carpetright agrees £15m sale to main investor Meditor". The Guardian. ISSN 0261-3077. Retrieved 5 December 2019.
  14. Price, Rachael (18 November 2019). "Carpetright Purchased by Poker Player's Hedge Fund". Gambling News. Archived from the original on 5 December 2019. Retrieved 5 December 2019.
  15. Nazir, Sahar (24 January 2020). "Carpetright goes private amid boardroom exodus". Retail Gazette. Retrieved 1 June 2020.
  16. "Retail Sites". Retrieved 14 May 2018.
  17. "Will Carpetright's shares fly again?". Walbrock Research. Archived from the original on 19 March 2018. Retrieved 18 March 2018.
  18. Greenwood, Carl (8 July 2016). "Lucy Alexander lands surprising new job after QUITTING Homes Under the Hammer". The Mirror. Retrieved 28 June 2020.
  19. Cooper, Joel (19 March 2020). "Exeter City Football Club announces new sponsor". Devon Live. Retrieved 28 June 2020.
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