Almost £8m is owed to Carpetright customers after the company’s collapse, with many unlikely to see refunds.
- The total debt owed by the flooring chain to unsecured creditors is revealed to be £373m.
- A significant backlash arose due to the transfer of intellectual property rights for £12m.
- Tapi Carpets acquired the Carpetright brand, yet many debts remain unpaid.
- Landlords and trade creditors are among those significantly affected.
Almost 21,000 shoppers are owed nearly £8 million as a result of Carpetright’s financial collapse, leaving most without refunds. Company directors disclosed that the amount owed could be even higher than initially reported, reflecting the broader impact of this retail failure.
Recent documents exposed that Carpetright owes an extensive £373 million to unsecured creditors. This debt spans across various stakeholders, amplifying the repercussions felt across the industry. The inability to settle these debts highlights the challenges faced by the company prior to its collapse.
Talal Shakerchi transferred the Carpetright brand and its intellectual property rights to Nestware Holdings for £12 million, sparking criticism. Insiders argue that these funds could have been utilised to address the unmet obligations towards both customers and creditors, pointing to potential mismanagement.
Tapi Carpets subsequently purchased the Carpetright brand in July, inheriting complex financial entanglements. The acquisition included the payment of £5 million for the chain’s intellectual property, yet the substantial debts to unsecured creditors remain unaddressed.
Landlords and trade creditors are among the hardest hit, with landlords such as B&Q and Asda owed a collective £148 million and trade creditors facing a deficit of £226 million. Simultaneously, Nestware is owed £175 million, although it is purportedly unlikely to recover these funds.
The collapse of Carpetright has had a profound financial impact on thousands of customers and creditors, illustrating the far-reaching consequences of the company’s failure.
