Carpetright, a UK major flooring retailer, is facing collapse and has submitted an application for administration, putting 1,800 jobs in jeopardy. The company is struggling to stay afloat with new investment. The challenges facing the firm range from economic struggles to reduced consumer spending, not forgetting a cyber-attack that yawed at its doors. Negotiations are still underway to find a solution that protects staff and customers.

Carpetright, one of the UK’s largest floor covering chains, is on the brink of collapse. It has released a notice to intend to appoint an administrator and is threatening 1,800 jobs. They are desperately striving to acquire new investment to be secured in their future.

The move into administration gives Carpetright 10 days of protection from creditors, offering the opportunity for 10 days of negotiation to find some solution. In that period, Carpetright will continue to keep its 272 stores open and trading. These stores employ 1,852 people under UK employment.

The company has lined up PricewaterhouseCoopers as possible administrators. However, as this goes to press, PwC had not yet been confirmed in the role officially. According to the records at the High Court, the notice came in on a Friday and Carpetright was advised by the law firm Travers Smith.

Carpetright has had a difficult time of late. Consumer spending on furniture and flooring is weak, while the struggling economy and soaring cost of living have added to this misery. Moreover, in April, Carpetright fell victim to a cyber-attack that led to business disruption, another hitch in plans for the restructuring of the business.

Kevin Barrett, chief executive of Carpetright’s parent company Nestware Holdings, said that refocusing efforts around getting outside investment is underway. He added that keeping disruption at a minimum for customers and staff remains top priority. He also mentioned that hopeful discussions with potential investors are underway, so they are rather positive on Carpetright’s future.

Carpetright is owned by Meditor Group, the hedge fund that bought the business for £15 million in 2019. It used to be a big firm in the FTSE 250, but has been fighting tough trading and competition from the likes of Tapi. The family of Lord Harris, founder of Carpetright founded Tapi.

In other news, giant Unilever—owner of Marmite and Domestos bleach, among other brands—wants to cut 3,200 jobs in Europe by the end of 2025. It is part of the larger program announced in March to reduce 7,500 jobs worldwide. Unilever has also pegged the spinning off of its ice cream division to save some €800 million over the coming three years.

In a nutshell, Carpetright has been placed in a difficult position. The firm is desperately seeking new investment to prevent collapse. The coming 10 days are very important, as there is tough negotiation ahead to ensure the survival of all stores and security of jobs. Meanwhile, major firms like Unilever are slashing thousands of jobs to save cost by streamlining operations.