Carpetright's customers, suppliers and landlords will reportedly be left hundreds of millions out of pocket following the retail chain's collapse last week.

According to a report by The Times, the company collapsed owing an estimated £213 million, with Royal Mail and Microsoft amongst the unsecured creditors who will lose money.

Administrator proposals seen by the publication suggest that hundreds of creditors will recover less than 1p in the pound.

After Carpetright entered administration last Monday, Tapi Carpets and Floors Limited announced they would rescue the Carpetright brand and IP, along with 54 stores.

The Carpetright website now links directly to Tapi's page.

Tapi said that the move would save the jobs of more 350 people, whilst enabling the business to expand into several areas it doesn’t currently serve.

“We are desperately sad not to have been able to save more of the business and customer orders,” said Tapi. “However, as we looked into the details of the situation, we quickly established that saving the entire business was unviable.”

The administration came after Carpetright had been materially loss making for a number of years, with significant debt accrued by its owner.

Following its collapse, The Times said that the business owed carpet suppliers Betap and Condor £1.9 million and £1.1 million respectively.

According to the newspaper, Microsoft was owed £3.1 million, while Royal Mail is £372,000 out of pocket. It also owed waste management company Biffa £852,000 and logistics giant DHL £540,000.

Image credit: Lauraewart11

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