Struggling Allied Carpets enters administration

| July 17, 2009 | 0 Comments

Jobs are at risk after Allied Carpets has gone into administration as the property market crash and economic downturn has meant fewer people are buying carpets and flooring.

Last month, rival Carpetright announced a 72% slump in profits after sales fell 7.4% compared with a year ago.

Meanwhile, BDO Stoy Hayward, which has been appointed as administrator to Allied Carpets, said 400 jobs have been saved as a quarter of its 217 stores and its insurance inspection business have been sold immediately.

It is also hoped that Allied Carpets Retail Limited will acquire some of the remaining stores over the next few weeks.

More than 1,000 staff are employed in the stores that have gone into administration.

Anyone who has queries should contact their local store but BDO did point out that outstanding customer orders will be fulfilled.

Dermot Power, business restructuring partner at BDO, said: “We are currently working to secure a going-concern sale of the remaining stores in the Allied Carpets portfolio.”

Allied Carpets employs around 1,500 workers in more than 200 stores throughout the country. It is the second largest carpet retailer in the UK, behind Carpetright.

Earlier this month, it was reported that the European trading arm of New Zealand firm Canterbury Group was placed into administration.

The sports and leisurewear firm, based in Stockport, distributes items for the rugby union sector and sponsors a number of rugby union and rugby league teams in the UK and Europe, including the Scottish national RU team, London Wasps, Leinster and Cardiff.

Furthermore, coffee and deli chain, Coffee Republic, entered administration earlier this month.

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