Carpetright collapse: 'I spent £680 and can't get a refund'

Lost £680 Due To Carpetright Collapse

Orders that are still pending will not be completed at closed stores.

The announcement that over 200 Carpetright stores will shut down following the company's collapse has startled anxious customers and employees throughout the United Kingdom.

Although rival retailer Tapi has taken over 54 stores, they have stated that they will not be completing any remaining customer orders from shops that have closed. Additionally, they have also made it clear that they will not be rehiring the approximately 1,500 employees who were let go.

Sian Bowers, a 40-year-old woman from Dagenham, recently invested £681 in a brand new carpet for her house in July. However, she is now worried that she may never receive it and has concerns about getting her money back. As a mother of two, Sian has already contacted the company and was informed that her order has not been processed for delivery.

"I spoke to my bank and they told me they couldn't help because I used chip and pin," Ms. Bowers explained. "I can't buy it again until I get my money back."

Ms Bowers saved up for two years to purchase the carpet and also used some of the inheritance she received after her mother's passing from Leukaemia.

She now wishes she hadn't paid all the money in advance: "I knew it was a hefty sum, but I eagerly agreed to have it completed."

'I Am Feeling Disappointed And Let Down'

Colin Dakers, who is from Glasgow, has been attempting to get in touch with Carpetright regarding his carpeting.

Colin Dakers from Glasgow has been attempting to get in touch with Carpetright regarding his carpets that he fully paid for at the start of July, totaling £1,630.

He went to his office in Uddingston earlier today, only to discover that the doors were locked and no one was present.

He had requested the store to keep his carpet safe while he worked on renovating his space and planned to have them installed in early September. However, the store shut down permanently yesterday.

"I'm in a difficult situation," he told the BBC. "I have products that have been paid for in full that are mine in my opinion."

"I would be glad to pick up the carpet, but I am unsure of its location."

Colin expressed his disappointment that customers, including himself, were not contacted by anyone from Carpetright after the company revealed its plan to appoint administrators. He was not informed about this beforehand and felt let down by the lack of communication.

This situation could have been prevented by making a quick phone call. They should have reached out to me and others who had belongings in storage to provide an update on the situation.

"That would have been okay. I could have picked up the carpet and stored it in a different location."

Similarly to Sian, Colin used his debit card to purchase his carpets, which means he does not have a guaranteed refund. He intends to reach out to the administrators, PwC, to explore his choices but is not very hopeful about the outcome.

'Get In Touch With Your Credit Card Issuer'

When a business stops operating, customers often find themselves at the bottom of a list of people owed money, making it very difficult to receive a reimbursement.

Fortunately, for customers who make purchases with a credit card, there are protections in place. According to the law, the credit card company shares responsibility with the retailer if there is a breach of contract. This means that if an order worth over £100 is not fulfilled, the credit card company should cover the cost.

The same privileges extend to individuals who made their payment through consumer financing.

According to Lisa Webb, who is an expert in consumer law at Which?, it is disappointing news for those who made payments with cash, cheque, or debit card as Carpetright is not providing any guarantee that they will receive refunds.

Carpetright was facing difficulties due to a decrease in consumer interest.

Carpetright, established in 1988, faced difficulties in April when sales dropped after a cyber-attack caused their online ordering system to stop working. However, the company had been dealing with declining consumer interest for a while.

The leader of Tapi, who is acquiring some of Carpetright's business, expressed deep regret on Tuesday for not being able to rescue more customer orders and jobs.

Some employees are upset by the suddenness of the news they received. Many workers at Carpetright's headquarters in Purfleet, Essex, as well as at a few retail locations, will soon be let go as the company closes its operations.

On Twitter, an individual who identified themselves as a former employee of the company expressed their distress, stating, "I am filled with numerous inquiries but lacking any resolutions. My heart is shattered. As a single mother striving to cover my expenses, I feel disrespected and undervalued by them."

John, who preferred to remain anonymous as he is still employed at Carpetright, shared with the BBC that he and his coworkers learned about the job cuts through the media.

He explained that Carpetright had given them minimal information and attributed the layoffs to the cyberattack in April.

John mentioned that they were just 10 minutes away from closing on that particular day.

As per information from Citizens Advice, if your employer goes bankrupt, you may be able to receive some of the money owed to you by your employer through the Redundancy Payments Service, which is a scheme operated by the government.

You can claim up to £700 for a week of unpaid wages or annual leave if your job ended on or after April 6, 2024.

'When It Happened, It Was A Shock.'

But it's not only the employees working directly for the company who are experiencing uncertainty; the independent fitters hired by Carpetright are also struggling.

Wayne Wadsworth, the owner of Finest Floors in Waterlooville, mentioned that he has been collaborating with Carpetright for two decades. He added that the company has been providing his business with work for five days every week.

Yesterday, the branch of his bank in Fareham was one of over 200 that shut down.

"We were completely surprised when it happened," he explained, mentioning that he and fellow carpet installers in the area were unaware of the company's financial difficulties.

After completing his final task at Carpetright on Tuesday, Mr. Wadsworth turned to social media to advertise his own business. He was encouraged by the response he received from potential customers after sharing his current circumstances online.

Many individuals reached out to me, but if I don't secure these positions, I won't have any source of income," he remarked.