Carpetright stores across the region will close despite the firm being rescued from collapse by a takeover deal.
The high street flooring retailer has been bought in a rescue deal by rival Tapi, but will shut more than 200 stores and cut more than 1,000 jobs.
It was announced on Monday Tapi had agreed to buy 54 Carpetright stores, two warehouses, the brand and its intellectual property in a pre-pack administration deal.
However, the deal will not save the majority of the business, including its head office in Purfleet, Essex.
Nine stores in the North East will pull down the shutters in the coming days.
Administrators at PwC said the deal will save more than 308 current jobs at Carpetright.
But here in the North East most of the brand’s stores will face the axe, with administrators confirming which stores are not included in the deal with Tapi.
Full list of North East Carpetright store closures
- Ashington, Northumberland
- Berwick, Northumberland
- Blyth, Northumberland
- Durham, County Durham
- Gateshead, Tyne and Wear
- Hartlepool, Teesside
- Northallerton (within Barkers), North Yorkshire
- Stockton Storeys Carpets, Teesside
- Washington Hub, Tyne and Wear
Carpetright, which is owned by Nestware Holdings, filed a notice to appoint administrators earlier this month, after struggling in the face of weaker demand and a major cyber attack in April.
The company employed 1,852 people and operated 273 stores across the UK before entering insolvency.
Zel Hussain, joint administrator at PwC, said: “The sale of some stores and the brand to Tapi has allowed over 300 jobs to be saved, and gives the Carpetright brand the chance to continue and flourish under its new ownership.
“However, it is deeply saddening that for the remainder of the workforce there will be redundancies.
“We are committed to helping those affected and will make sure redundancy claims are processed as quickly as possible.”
The administrators said orders made at stores now set for closure “are unable to be fulfilled” and recommended customers to contact their card provider to potentially secure a refund.
Tapi was founded in 2015 by Lord Harris of Peckham, who also founded Carpetright. He sold all his stock in Carpetright in 2014.
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Tapi has grown rapidly in recent years and runs about 175 shops across the UK.
Jeevan Karir, managing director of Tapi Carpets & Floors, said: “Our goal, initially, was to try to save all of Carpetright.
“However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable.”
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