Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Carpetright’s collapse leaves creditors facing £213m loss

by July 31, 2024
July 31, 2024
Carpetright’s collapse leaves creditors facing £213m loss

Carpetright’s recent collapse has left customers, suppliers, and landlords facing an estimated £213 million loss, with many expected to recover less than 1p for every pound owed.

The collapse of Britain’s largest flooring chain has impacted hundreds of unsecured creditors, including high-profile names such as Royal Mail and Microsoft, according to administrators’ proposals obtained by The Times.

Among the creditors, carpet suppliers Betap and Condor were owed £1.9 million and £1.1 million, respectively. Microsoft was owed £3.1 million, waste management company Biffa £852,000, Royal Mail £372,000, and logistics company DHL £540,000.

The total liabilities of Carpetright are estimated to be around £338 million. This figure includes the amount owed to customers who had paid in advance for goods and services, although this specific amount was not detailed in the document.

PwC, acting as administrators, calculated that HM Revenue & Customs (HMRC) was owed £9 million, with expectations that this debt will be nearly fully repaid.

As a secured creditor, Carpetright’s owner Nestware Holdings is first in line for any payout. Nestware has a claim for £120 million, but the proposals suggest it is unlikely to recover any of this amount.

Nestware is owned by Meditor, a British hedge fund led by Talal Shakerchi, known for his poker alias “Raidalot”. Shakerchi has faced criticism for moving £12 million of secured debt into the company in December in exchange for Carpetright’s intellectual property, which was subsequently transferred to Nestware.

A source close to the situation has called for an end to such restructuring deals, which allow brands to continue trading debt-free while leaving creditors out of pocket.

Carpetright’s administration has resulted in the closure of 273 stores and 1,500 job losses. Its remaining 53 stores were acquired by Tapi, a main competitor, through a pre-pack administration deal that included the transfer of 308 employees.

The administration filing followed a winding-up petition from HMRC for unpaid VAT and PAYE payments, previously reported to be approximately £4.6 million in VAT and £5.1 million in payroll and PAYE at the end of April.

Carpetright also suffered a cyberattack in April, disrupting its ability to trade for over a week. PwC noted that this incident exacerbated the business’s already precarious financial situation.

The company had been struggling for several years, failing to recover even after a company voluntary arrangement in 2018 led to the closure of numerous stores.

Read more:
Carpetright’s collapse leaves creditors facing £213m loss

0
FacebookTwitterGoogle +Pinterest
previous post
IDF kills Hezbollah commander behind brutal attack on children’s soccer field: officials
next post
Bank of England losses cost Government £45bn as interest rates rise

You may also like

Joules hopes insolvency deal with creditors and landlords...

October 11, 2022

How Santino Mark DiMarzo helps businesses meet their...

May 12, 2023

Women business-owners fear war more than men, new...

October 19, 2022

Rising Threat of ‘Hackers for Hire’: How End-to-End...

August 9, 2023

How to store or hide important business and...

January 16, 2024

London City Airport Secures £130m Lifeline Amid Business...

October 13, 2024

House of Lords criticise Government response to digital...

October 21, 2023

Khan expands £2,000 Ulez grant to all Londoners...

August 4, 2023

Record rise in long-term illness pushes UK unemployment...

May 16, 2023

MPs propose levy on arena concert tickets to...

May 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025
    • FLASHBACK: Musk accused Trump, GOP leaders of not wanting to cut spending — here’s where they said they would

      June 7, 2025
    • ‘Right down the line’: Medicaid reform in ‘big, beautiful bill’ divides lawmakers by party

      June 7, 2025
    • FAST distribution and IA

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,562)
    • Stocks (3,135)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved