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
FoundedNovember 1988
HeadquartersPurfleet, Essex
Number of locations
350 (2019)
Key people
Wilf Walsh (Chief Executive)
ProductsCarpets
Revenue£469.8 million (2015)[1]
£8.2 million (2015)[1]
£4.5 million (2015)[1]
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 November 1988, when he opened the first shop in Canning Town.[2] It was first listed on the London Stock Exchange in June 1993. It bought selected shops of Carpetland, and Allied Carpets, in January 1999.[2] It acquired its first operations in Continental Europe in August 2002, and in August 2005, it acquired May’s World of Carpets.[2]

Cascade Investment, LLC, the investment vehicle of Bill Gates, acquired their stake of 3% in the company, in May 2008.[3] In December 2008, the company acquired some shops, once associated with Sleepright UK.[4] Carpetright announced significant shop closure plans in June 2011, and in December 2011, it posted its first loss since 1993.[5]

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 ninety two stores, with a total loss of three hundred jobs, out of the total workforce of 2,700, as part of their restructuring measure.

It was announced, on 11 May 2018, that Carpetright secured a £15 million loan, to provide short term working capital.[6]

In November 2019, Carpetright announced that their largest shareholder, Meditor, had agreed to purchase the company.[7] The cut price £15.2m bid was accepted by the company, amid fears it cannot pay off its debt pile.[8] 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.[9]

According to Carpetright, the rescue deal will help the company complete a turnaround plan in the “very challenging consumer market”.[10] 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.[11] Investec Asset Management backed the bid, made by Meditor, with more than 11.3 million shares.[9]

Carpetright announced the departure of chairman Bob Ivell in January 2020, as the store returns to private ownership, after twenty six years. A number of non executive directors, including Jemima Bird, Pauline Best and David Clifford, have now stood down from the board of Carpetright, consequently because of the takeover.[12]

Operations

The company now has over four hundred shops.[13] It has expanded into Belgium,[13] the Netherlands,[13] and the Republic of Ireland.[13] Their products include a wide variety of beds, mattresses, carpets, laminate flooring, vinyl flooring and rugs.[14]

Marketing

Carpetright announced a new partnership in July 2016, with Lucy Alexander as their brand ambassador.[15]

It was announced, in March 2020, that Carpetright would become the new main shirt sponsors for Exeter City F.C., commencing from the season of 2020/21, replacing the recently collapsed airline, Flybe.[16]

References
  1. "Annual Results 2015" (PDF). Archived from the original (PDF) on 23 March 2017. Retrieved 23 March 2017.
  2. Carpetright History Archived 18 August 2008 at the Wayback Machine
  3. 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.
  4. "Carpetright snaps up Sleepright". 8 December 2008.
  5. "Carpetright reports first ever profits dip since floating in 1993". The Guardian. 13 December 2011. Retrieved 18 March 2017.
  6. Woods, Ben (11 May 2018). "Carpetright secures £15m emergency funding". The Telegraph. ISSN 0307-1235. Retrieved 14 May 2018.
  7. Szajna-Hopgood, Ava (15 November 2019). "Carpetright to be taken over by Meditor". Retail Gazette. Retrieved 18 November 2019.
  8. "Carpetright accepts cut-price £15m rescue deal from Meditor". CityAM. 15 November 2019. Retrieved 5 December 2019.
  9. "Meditor scores win as shareholder backs its bid for Carpetright". Evening Express. 6 November 2019. Retrieved 5 December 2019.
  10. Butler, Sarah (15 November 2019). "Carpetright agrees £15m sale to main investor Meditor". The Guardian. ISSN 0261-3077. Retrieved 5 December 2019.
  11. Price, Rachael (18 November 2019). "Carpetright Purchased by Poker Player's Hedge Fund". Gambling News. Retrieved 5 December 2019.
  12. Nazir, Sahar (24 January 2020). "Carpetright goes private amid boardroom exodus". Retail Gazette. Retrieved 1 June 2020.
  13. "Retail Sites". Retrieved 14 May 2018.
  14. "Will Carpetright's shares fly again?". Walbrock Research. Archived from the original on 19 March 2018. Retrieved 18 March 2018.
  15. Greenwood, Carl (8 July 2016). "Lucy Alexander lands surprising new job after QUITTING Homes Under the Hammer". The Mirror. Retrieved 28 June 2020.
  16. Cooper, Joel (19 March 2020). "Exeter City Football Club announces new sponsor". Devon Live. Retrieved 28 June 2020.
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