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Devastated Carpetright customers left thousands of pounds out of pocket after collapse of chain

DEVASTATED Carpetright customers have been left thousands out of pocket after the chain collapsed into administration on Monday.

Tens of thousands of customers with outstanding orders have been told they will no longer be fulfilled, despite the brand being bought by rival retailer Tapi.

Athena
We’ve explained how you can fight for a refund below[/caption]
Customers are now shown this page when visiting Carpetright’s website

The homeware brand has bought Carpetright brand and 54 stores in a rescue deal, but it will close 218 of Carpetright shops and cut more than 1,000 jobs.

Dozens of customers have been posting on social media, with some losing thousands of pounds for carpets which will no longer be delivered or fitted.

One customer posted on X (formerly Twitter) and said: “What day I’ve already had but then hear Carpetright has taken £1,800 off my mum for new carpet.

“Full amount up front. Cancelled fitting this week. Help!”

Another customer said: “I paid £2,400 on Monday this week, but they then called me this morning to say the carpet was no longer in stock, and they cannot refund either. 

“So no carpet and £2,400 of very hard-earned money spent.”

Colin Dakers from Glasgow has been trying to contact Carpetright about his carpets, which he paid for in full at the beginning of July, spending £1,630.

He told BBC News: “I’m stuck between a rock and a hard place.

“I have goods that have been fully paid for that belong to me as far as I’m concerned.

“I’d be happy to go and collect the carpet, but I don’t know where it is.”

WHAT IS HAPPENING TO ORDERS?

Administrators at PwC have confirmed that the majority of orders will now not be fulfilled.

All orders placed online, and any placed at the 218 stores marked for closure will not be met.

Only orders placed at one of the 54 stores purchased by Tapi will go ahead, but customers will first need to request a refund before placing a new order with the new Carpetright company.

These stores are due to re-open on Friday, July 26.

Carpetright stopped taking payment for orders until the day of fitting on July 12.

However, certain card protections will grant you the power to get a refund.

If you paid via finance, then you must contact the provider directly.

The company will no longer accept gift vouchers.

PAID BY CREDIT CARD

If you’ve paid for an order via a credit card, you should contact your provider and claim the deposit under Section 75 of the Consumer Credit Act 1974. 

To make a valid claim the goods or service you bought must have cost over £100 and not more than £30,000.

It means that if you pay for a big purchase on your credit card and something happens – like the goods aren’t delivered or the shop goes bust – your card provider is just as responsible as the retailer for refunding you.

Section 75 also applies to goods bought in-store, online, over the phone or mail order.

To make a claim, contact your credit card provider – your first port of call should be its customer services phone number – and tell them you want to make a claim under Section 75.

It should then send you a claim form, which you can fill in, and your provider will use to process your application.

Your card firm might ask you to provide evidence, such as a receipt or a report verifying that the item is faulty.

You cannot make a Section 75 claim if you paid by debit card.

However, these customers have another means to request a refund.

CARPETRIGHT STORES STILL TRADING

ON Monday, the flooring retailer Tapi announced that it had agreed to buy 54 Carpetright stores, two warehouses, the brand, and its intellectual property in a pre-pack administration deal

Customers will be able to shop as normal at the following stores.

However, some will be temporarily shut for a few days while they are set up to operate again.

Tapi expects all purchased Carpetright stores to reopen on Friday, July 26.

  • Basildon
  • Birmingham – Erdington
  • Bishopbriggs
  • Bristol – Longwell Green
  • Camborne
  • Camden
  • Carmarthen
  • Cheadle
  • Chesterfield
  • Chichester
  • Chippenham
  • Clapham Common
  • Coventry – Airport Retail Park
  • Cramlington
  • Croydon
  • Dumbarton
  • Dumfries
  • East Sheen
  • Edinburgh – Hermiston Gait
  • Epsom
  • Farnborough
  • Friern Barnet
  • Haywards Heath
  • Hemel Hempstead
  • Hereford
  • High Wycombe – Loudwater
  • Holloway
  • Hove
  • Ipswich – Anglia Park
  • Lancaster
  • Leeds – Kirkstall
  • Maidstone
  • Mansfield
  • New Malden
  • Newbury
  • Newmarket
  • North Shields
  • Norwich – Sprowston
  • Peterborough
  • Plymouth – Marsh Mills
  • Southampton – Hedge End
  • Stockton
  • Swindon – Bridgemead
  • Teddington
  • Trowbridge
  • Truro
  • Washington – Armstrong
  • West Wickham
  • Weston-Super-Mare
  • Weymouth
  • Whetstone
  • Wimbledon
  • Woking
  • Yeovil
  • Chessington Warehouse
  • Croydon Warehouse

PAID BY DEBIT CARD

Chargeback is a consumer protection mechanism that allows individuals to request a refund from their bank or card issuer if they encounter issues with a purchase made using a credit or debit card.

While chargeback is not a legal right in the UK, it is part of the voluntary schemes run by card networks like VisaMastercard, and American Express, and is widely supported by banks and financial institutions.

Here, your bank will try to get your money back from Carpetright’s bank.

You typically have 120 days from the date of the transaction to submit a claim.

Usually, it’s just a phone call where you tell the card firm what happened and ask it to do a chargeback.

Once you’ve spoken to your bank you’ll need to provide the full details of your transaction with Carpetright.

Some banks will ask you to fill out a claim form.

Others just take details of the transaction and start the claim for you.

There’s no specific timeframe when it comes to getting your money back.

Once you’ve applied for chargeback, it’s up to your card provider to contact the supplier’s bank to process the refund, which could take time.

WHAT ABOUT GIFT CARDS?

CARPETRIGHT can no longer be used in most stores and online.

Trading has ended at stores that have closed and Carpetright gift cards will not be accepted at the stores that have been transferred to Tapi Group and online. 

The chain’s administrators recommend that customers contact whoever issued them and discuss their options.

You will be a creditor of Carpetright Limited. To submit a claim, you should contact uk_carpetright_creditors@pwc.com, providing your full name and corresponding address.

One of the team will arrange to send you the relevant information via letter so that you can submit your unsecured claim. 

PAID BY CASH

If you did not pay by credit or debit card you still have the right to lodge an “unsecured claim” in the administration estate of Carpetright Limited. 

To do so, please contact uk_carpetright_creditors@pwc.com, providing your full name and corresponding address,

One of the team will then arrange to send you the relevant information via letter in order to submit your unsecured claim. 

However, cash refunds are never guaranteed and you may find that you’ll only be able to get back a small proportion of what you originally paid.

CARPETRIGHT'S DOWNFALL

It was believed the executives at the retailer were reluctant to approach Tapi about a deal over fears it could gain access to sensitive trading information.

It came after Carpetright’s owner, Meditor, a British hedge fund, ruled out buying back the business or investing any more money.

Meditor owns Nestware Holdings and also owns The Floor Room.

Carpetright filed a notice to appoint administrators two weeks ago, on July 12.

The firm previously said it was using the administration process to finalise additional investments and secure the company’s long-term future

Carpetright, which is one of the country’s biggest floor-covering retailers, said the decision was made following “financial pressures” after a software attack that disrupted trade in April.

The retailer was then put on the market.

The retailer, founded by Lord Harris of Peckham in 1988, was taken off the stock market in 2019 by its biggest investor, Meditor.

However, the Harris family became one of Carpetright’s biggest challenges as son Martin Harris launched a rival flooring retailer, Tapi, which increased competition.

The 1988-founded icon British chain brought in restructuring experts Teneo earlier this year to examine cost-cutting measures.

A lack of consumer spending in recent years and a rise in competition are thought to have caused problems for the brand.

At the time of its collapse, Carpertright traded out of 272 stores.

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