Iconic Family Business Closes After a Century of Service, Resulting in Job Losses
A cherished family-owned enterprise has sadly closed its doors after a remarkable 100 years in operation, leaving 50 dedicated employees without jobs. Adam Carpets, a renowned name in the carpet industry, has cited the “immense pressure” from challenging economic conditions as the reason for its closure.
Located in Kidderminster, Worcestershire, Adam Carpets has been a staple of the community since its establishment in 1928, producing high-quality carpets that were highly sought after. Despite the owners’ efforts to appoint administrators on March 20 in hopes of salvaging the business, these attempts proved unsuccessful.
In a statement, the joint administrators expressed their focus on maximizing value for creditors, as reported by the BBC. Managing Director Chris Adam conveyed the team’s deep sorrow regarding the appointment of administrators, stating, “UK consumers simply do not have the confidence in their finances to buy enough of our high-quality wool-rich carpet to make our business viable right now.” Consequently, all 50 employees of this historic company have been made redundant.
Despite this unfortunate turn of events, Adam Carpets has pledged to assist its former employees in planning their future endeavors. The beloved store was well-known for its commitment to quality products and swift service. One satisfied customer remarked on Google Maps, “The quality of their products is frankly outstanding. Traditional, UK-made from an area known for the best carpets in the world.” Another customer added, “Excellent, well-made carpet. The fact it’s dyed, tufted, and finished in Kidderminster makes it all the better. Quality always speaks for itself, and the carpet products on sale from Adams certainly ‘tick all the boxes’!”
This unfortunate closure follows the recent demise of Huttons gift shop, which opened in the 1990s and became a beloved local icon in Putney Exchange, London. The gift shop, known for its diverse range of stationery, candles, gifts, ceramics, and clothing from around the globe, was unable to withstand the current economic conditions after the budget announcement in October. In her budget speech, Rachel Reeves revealed plans to lower business relief rates and increase employer national insurance contributions, further straining small businesses.
Retail Sector Faces Significant Challenges in 2025
The British Retail Consortium has projected that the Treasury’s increase in employer National Insurance Contributions (NICs) will impose a staggering £2.3 billion burden on the retail sector. Research conducted by the British Chambers of Commerce indicates that more than half of businesses plan to increase their prices by early April. A survey of over 4,800 firms revealed that 55% expect price hikes in the next three months, a marked increase from the 39% noted in a similar poll conducted in the latter half of 2024. Three-quarters of respondents cited the costs associated with employing staff as their primary financial pressure.
The Centre for Retail Research (CRR) has also issued a dire warning, predicting that approximately 17,350 retail sites could close their doors this year. This comes on the heels of a tumultuous 2024, which saw 13,000 stores cease operations—already a 28% increase compared to the previous year. Professor Joshua Bamfield, director of the CRR, stated, “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they remain disconcerting, with worse set to come in 2025.” He has further warned of a bleak outlook for the upcoming year, projecting that as many as 202,000 jobs could be lost within the retail sector. “By increasing both the costs of running stores and the financial burden on each consumer’s household, it is highly likely that we will see retail job losses surpass those experienced during the pandemic in 2020,” he added.
Critics have argued that the recent budget has exacerbated the already challenging conditions for businesses. With higher costs per customer, many shops across the country are facing bankruptcy. For instance, Lancaster’s Bakery in Harrogate, which has been serving customers for an impressive 119 years, cited “increases in employer costs” as the reason for its closure. Similarly, the Bournemouth department store Beales announced its inability to survive in the current economic climate.
Earlier this month, the beloved family-run store Marcruss Outdoors unexpectedly shut down after nearly 60 years of service. The owners of the shop in Hotwells, Bristol, attributed this heartbreaking decision to the “harsh economic climate”, stating on social media, “Unfortunately, the harsh economic climate has made it impossible for us to continue. Despite having weathered countless recessions and even the challenging lockdowns, the final blow has come in the form of the Clean Air Zone.”
As the retail sector grapples with these ongoing challenges, many stores are finding themselves forced to close their doors due to the ‘harsh economic climate’.