You’ve seen them all around, known for their extensive range of carpets and tiles, but recently, Carpetright filed a notice to appoint administrators from PricewaterhouseCoopers (PwC) to protect itself while seeking a last-minute buyer. This move affects its 272 stores, jeopardizing 1,800 jobs.

The Current Situation

The news came to light when Carpetright was put up for sale. On Friday, 12th July, the company took a significant step by filing a notice of intention to enter administration at the High Court. This filing gives the retailer some breathing room as it searches for a potential buyer to secure its future.

PwC had been collaborating with Carpetright to secure the necessary funding to continue operations, according to MyLondon. The situation became more critical after a cyber-attack in April disrupted business and added financial strain.

Impact of the Cyber-Attack

In April, cyber attackers targeted Carpetright’s headquarters in Purfleet, Essex. They used malware to gain unauthorised access, forcing the company to shut down its network to prevent the spread of the virus.

While no data breach was reported, the attack disrupted payroll systems, affecting both employees and customers. A source revealed to The Sun that staff couldn’t access key systems, and customers were unable to reach helplines.

Kevin Barrett, the head of Nestware Holdings, which owns Carpetright, stated that the cyber-attack significantly impacted their restructuring plans. As a result, the company sought protection while negotiating a sale.

Challenges Facing Carpetright

The company has faced numerous challenges, including slowing customer demand and tough trading conditions for big-ticket items. John Cullen, a partner and insolvency expert at Menzies, pointed out that the cyber-attack was the final straw for Carpetright.

Carpetright has faced financial difficulties before, undergoing insolvency proceedings six years ago that led to the closure of 81 stores. Despite these efforts, the company has struggled to stay afloat.

Our Thoughts

The situation with Carpetright highlights the vulnerability of retail businesses to both economic pressures and cyber threats. The combination of reduced consumer spending and the disruptive cyber-attack has placed Carpetright in a precarious position. This serves as a stark reminder for businesses to adapt to changing market conditions, invest in robust Cyber Security measures, and implement Security Awareness Training for their staff on a regular basis.

Ways of Protecting Your Business

To avoid a fate similar to Carpetright’s, businesses should:

  • Enhance Cyber Security: Put aside a healthy IT budget to invest in strong cyber security protocols to protect against attacks.

  • Regular Monitoring: Continuously monitor financial health and market conditions. Who doesn’t love another dashboard?

  • Backups & Detection: Regularly backing up data and using advanced threat detection systems can also help mitigate risks.

  • Employee Training: Educate employees on cyber security best practices and recognise Phishing Attempts as well as other cyber threats.

  • Diversify Offerings: Adapt to changing consumer demands by diversifying product offerings.

PhishFrenzy Can Help

PhishFrenzy Can Help

Carpetright’s rocky slope is a caution for businesses and highlights the importance of resilience and preparedness. UK Organisations can better safeguard their futures by taking proactive measures to strengthen cyber security and adapt to market shifts. At PhishFrenzy, we can help enhance your security awareness. Let’s discuss how our service can protect your business today!

Service Overview

Contact Us