Nestware, owner of Carpetright, has faced significant financial setbacks.
- The closure of The Floor Room resulted in £10.8m in losses for Nestware.
- Administration of The Floor Room led to 201 job losses.
- Nestware also wrote off £175.4m related to Carpetright, which entered administration.
- Carpetright’s debts included £3.5m rent arrears and £8m in outstanding customer orders.
Nestware, the parent company of Carpetright, has encountered substantial financial difficulties recently. These challenges were primarily due to the closure of The Floor Room, which imposed a financial burden of £10.8 million on the company.
The closure of The Floor Room, which occurred at the start of August, was a significant event, resulting in the loss of 201 jobs. This upmarket flooring provider had been a key supplier of flooring and related products in John Lewis department stores since May 2023 and also operated a standalone store in London.
In addition to the difficulties faced with The Floor Room, Nestware also had to write off a considerable sum related to its Carpetright business. The total write-off amounted to £175.4 million, which included a £120 million revolving credit facility and £54.7 million in loans, deemed “irrecoverable” by the company.
Carpetright, which was placed into administration in late July, owed at least 11 retail businesses, including B&M, Furniture Village, and Lidl, nearly £3.5 million in outstanding rent charges. Moreover, approximately 21,000 customers awaited resolution of £8 million in outstanding orders, signifying a challenging financial landscape for the company.
Nestware’s recent financial setbacks highlight significant challenges within the retail sector.
