A flooring business dependent on collapsed carpet retailer Carpetright has fallen into administration, resulting in the loss of 200 jobs across the UK.
The Floor Room, which operated within 34 John Lewis department stores, appointed administrators from PwC.
Its concessions and one flagship store on London’s Tottenham Court Road have closed immediately.
The insolvency means 196 staff have been made redundant, based across its shops, head office in Purfleet, Essex, and those providing in-home services, PwC said.
Some employees in Purfleet will be retained for a short time to support in winding down the company’s operations.
Adam Seres, joint administrator at PwC UK, said The Floor Room “depended on its sister company, Carpetright, for much of its trading infrastructure”, and that the firm’s “financial position meant that it was impossible for the business to continue trading”.
The Floor Room is owned by Nestware Holdings, a flooring group which was also the parent company of Carpetright prior to its collapse.
Carpetright fell into administration last month after struggling in the face of weaker consumer demand, and suffering a major cyber attack in April.
The company employed 1,852 people and operated 273 stores across the UK before entering insolvency.
Carpetright’s brand, intellectual property, 54 stores and two warehouses were bought by rival Tapi weeks later, while Bensons for Beds later announced it had bought 19 stores.
But the failure ultimately led to the closure of more than 200 other stores and immediate redundancy for 1,018 workers.
Customers of The Floor Room who are waiting on orders they have placed or who have paid a deposit have been told they will not be given a refund as a result of the immediate closures.
PwC said it recommends customers contact their payment card provider about the possibility of obtaining a refund.
The Floor Room had 201 employees and traded out of John Lewis stores across the UK, selling and fitting premium flooring products as well as home furnishings.
Mr Seres added: “It is with sincere regret that this outcome has had to result in the redundancies of the majority of employees.
“We are committed to helping those affected and will work hard to ensure redundancy claims are processed as quickly as possible.
“We know this is an unsettling time for many of those affected, and want to thank all the staff for the support they have given the company in these difficult circumstances.”
