Businesses have been urged to make “bold decisions early and “avoid kicking problems down the road” in the wake of reports that Carpetright is on the brink of collapse. It was reported at the end of last week that the brand is linking up PwC to oversee its entry into administration in a move which would put around 1,800 jobs at risk. The major carpet and tiling retailer, which is headquartered in Essex, would follow the likes of The Body Shop , Ted Baker and online luxury fashion retailers Matches and Farfetch into insolvency.
Carpetright currently runs around 270 stores across the UK and previously launched a CVA back in 2018 which entailed 81 store closures, rent reductions and business restructuring in order to stay alive. Responding to the news Dave Phillips, senior managing director at FTI Consulting, said: “This announcement is yet another sign of the pressures the UK retailers are facing and the need for increased resilience. “In recent years, costs for retailers have been rising on all fronts.
“The Ukraine war has driven up energy prices, affecting both production and store operating costs. “Although supply chain disruptions from Covid-19 may have subsided, global distribution remains unstable and volatile, as demonstrated by incidents like the Ever Given blockage in the Suez Canal and issues in the Red Sea. “Inflation has impacted everyone, and the additional pressures of wage inflation and increases in the minimum wage have further escalated costs fo.