Carpetright owes 21,000 prospects £8m and most will not be refunded
Close to 21,000 Carpetright customers are owned nearly £8million for outstanding orders but most of them will not receive refunds.
The flooring chain went into administration in July and saw 273 shops closed, leading to 1,500 job losses while its remaining 53 stores were bought by its main competitor Tapi.
It owes millions to customers for unfulfilled orders and the majority will not get refunds, according to the directors’ statement of affairs.
However sources claim the amount owed is likely to be ‘considerably higher’, The Times has reported.
Close to 21,000 Carpetright customers are owned nearly £8million for outstanding orders but most of them will not receive refunds
The flooring chain went into administration in July and saw 273 shops closed, leading to 1,500 job losses while its remaining 53 stores were bought by its main competitor Tapi
It owes millions to customers for unfulfilled orders and the majority will not get refunds, according to the directors’ statement of affairs
Carpetright was owned by Nestware Holdings, whose owner is British hedge fund Meditor that is run by asset manager and poker player Talal Shakerchi.
Shakerchi has faced criticism over the decision to transfer Carpetright brand and intellectual property rights to Nestware in December for £12million.
Tapi later bought the intellectual property rights from Nestware for £5million.
But sources close to Carpetright and Tapi have been critical of the retailer’s owner for not using some of the money to pay customers and creditors.
An executive said it was ‘disappointing’ and added that ‘controversial’ restructuring deals should not be allowed to happen in the UK as they allow companies to ‘leave customers, employees and suppliers out of pocket’.
While a second senior source asked why Shakerchi had not used some of his winnings from poker to pay creditor debts.
He earned $3.25 million from the Triton Poker Super High Roller Main Event last year and poker publications believe he has made more than $18 million in live tournament earnings.
Which? consumer rights expert Gurpreet Chhokar said it is ‘shocking that Carpetright customers could still be owed £7.6 million after the business fell into administration over the summer’.
Lord Harris of Peckham (pictured in 2000) founded Carpetright when he opened a single shop in east London in 1988
Demand has also slowed due to the shift from bricks-and-mortar shops to online. Pictured: A Carpetright store
She added: ‘Many of these customers will have been saving for months to make these home improvements and at a time of huge cost of living pressures, it may be impossible for them to get the funds together quickly to go ahead with a different firm.’
But she revealed that customers who paid more than £100 on their credit card for flooring can claim it back under Section 75 of the Consumer Credit Act if the item is faulty or not delivered.
The total debt owed to unsecured creditors, including customers, suppliers, landlords and floor fitters, has increased to £373million, according to newly filed documents.
Landlord creditors, which total 298, are owed £148million and the amount owed to trade creditors adds up to £226million.
Nestware is owed £175million but sources say it hasn’t received any cash and is unlikely to ever do so.
Carpetright’s notice of administration came amid the slumping of sales in the furniture and retail industry as consumers have been hit by the cost-of-living crisis.
The primary problem facing the company had been slowing customer demand across the furniture and homeware industry.
Mediator and Shakerchi were contacted for comment.
