Carpetright’s largest competitor Tapi is moving closer to a deal to snap up its rival, potentially saving hundreds of stores and jobs.
Tapi Carpets is in pole position to acquire the retailer, which put itself up for sale last week, following its formal bid to buy the Carpetright brand name as well as a number of stores.
The carpet business – which was founded in 2014 by Martin Harris, the son of Carpetright founder Lord Harris of Peckham, who is also a shareholder – is not understood to want to buy its rival’s head office in Purfleet, Essex, according to The Times.
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An acquisition is likely to be delivered via a pre-pack administration, which could lead to some of its 272 shops being shut and jobs scrapped.
Carpetright placed administrators at PwC on standby on Friday as it sought a “period of protection” whilst it raced to secure additional investment.
It is thought that the retailer’s execs had not wanted to approach Tapi regarding a deal due to fears it could gain access to sensitive trading information.
Additionally, it is understood that Carpetright was hoping for a quick sale and worried its competitor would have to go through competition clearance.
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