Carpetright Limited is one of the largest British retailers of floor coverings and beds. The company is owned by Meditor.
History
The company was established by Lord Harris of Peckham in November 1988, when he opened the first shop in Canning Town. It was first listed on the London Stock Exchange in June 1993. In January 1999, it bought selected shops of Carpetland and Allied Carpets. It acquired its first operations in Continental Europe in August 2002, and in August 2005, it acquired May's World of Carpets. In May 2008, Cascade Investment, LLC, Bill Gates's investment vehicle, acquired a 3% stake in the company. In December 2008, the company acquired some shops, once associated with Sleepright UK. In June 2011, Carpetright announced significant shop closure plans and in December 2011, it posted its first loss since 1993. On 21 March 2018, it was reported 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 a total workforce of 2,700, as part of a restructuring measure. On 11 May 2018, it was announced that Carpetright secured a £15 million loan, to provide short term working capital. In November 2019, Carpetright announced that their largest shareholder, Meditor, had agreed to purchase the company. The cut price £15.2m bid was accepted by the company, amid fears it cannot pay off its debt pile. Carpetright have estimated that the company would need around £80 million to get out of its debt problems. The company's gross debt is evaluated at £56 million. According to Carpetright, the rescue deal will help the company complete a turnaround plan in a "very challenging consumer market". The hedge fund that will acquire the retailer is headed by Talal Shakerchi, a former professional poker player, and the former fund manager for Old Mutual. Investec Asset Management backed the bid made by Meditor with more than 11.3 million shares. In January 2020, Carpetright announced the departure of chairman Bob Ivell, 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 stood down from the board of Carpetright, as a consequence of the takeover.
In July 2016, Carpetright announced a partnership, with Lucy Alexander as their brand ambassador. In March 2020, it was announced that Carpetright would become the new main shirt sponsors for Exeter City F.C. from the season of 2020/21, replacing the recently collapsed airline Flybe.
