The Floor Room Ltd, a subsidiary of Nestware Holdings Ltd, operated concessions in UK department stores and a standalone store in central London, specialising in carpets and flooring. The company has filed for insolvency on 13th August, 2024. With 201 employees across the UK, the company heavily relied on support services provided by its sister company, Carpetright. However, following a cyber attack on Carpetright in April and its subsequent insolvency, The Floor Room’s ability to operate under its existing business model was severely compromised.

Efforts by management and stakeholders to find a viable solution proved unsuccessful, leaving The Floor Room Ltd with no option but to enter administration. Adam Seres, Zelf Hussain, and Peter Dickens of PwC have been appointed as joint administrators. Due to the company’s financial position, all concessions and the London store were closed immediately, and 196 employees, including those at the head office, retail sites, and those providing in-home services, were made redundant upon the appointment of the administrators.

A small number of employees will be temporarily retained at the company’s head office in Purfleet to assist with the winding down of operations. There is no clarity about the total number of redundancies yet, but it is estimated that close to 200 jobs may be list. The administrators are working closely with the Redundancy Payments Service to ensure that affected employees receive their statutory entitlements as quickly as possible.

Unfortunately, outstanding customer orders cannot be fulfilled. Affected customers have been to contact their payment card provider to inquire about potential refunds. The Floor Room’s downfall is closely tied to Carpetright’s financial troubles, demonstrating the risks associated with operational dependencies between sister companies. The failure of one entity can have a cascading effect, leading to the insolvency of the other.

To find out more about the business administration process and the UK insolvency landscape, stay tuned to Administration List.