Tapi Carpets & Floors has purchased 54 Carpetright stores in a rescue deal that was only able to save a fifth of its locations.

As a result of the multi-million-pound deal, more than 1,500 jobs are to be cut and 219 shops are set to close.

PwC has been looking for a buyer for the formerly-FTSE listed carpet firm after it filed a notice of intention to appoint an administrator earlier this month.

Joint administrator, Zelf Hussain, said that Carpetright has "fallen victim" to challenges, including the drop in consumer spending as a result of the cost-of-living crisis, lower homes sales and a "debilitating" cyberattack earlier this year, which has made it "impossible for the business to continue in its current form".

As part of the pre-pack administration deal, 1,018 jobs would go immediately, while a further 580 jobs, which are mostly at the group’s head office, are expected to go once Tapi completes the handover.

Tapi, which operates 170 stores in the UK, launched in 2015 and was co-founded by the son of the ‘carpet king’, Lord Harris of Peckham.

The firm said that the acquisition of Carpetright is set to allow it to expand in a number of new areas. However, it added that it did not want to take on more stores because of how the Competition and Markets Authority may view the larger deal.

Managing director at Tapi, Jeevan Karir, 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. The business has been materially loss-making for a number of years and it has significant debt held by the owner."

Chief executive at Nestware Holdings, the mediator-controlled group that ran Carpetright, Kevin Barratt, added: "We have tried everything to turn Carpetright around and I’m truly sorry that we were unable to save more jobs. The deal will not affect Carpetright in Europe or other brands within Nestware Holdings including Keswick and Trade Choice.

"The Floor Room will continue to trade and serve customers via concessions at John Lewis and we will be working hard to secure job opportunities across these businesses to support Carpetright staff wherever we can."

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