Allied Carpets in administration

THE deterioration of the housing market has been blamed for sending Allied Carpets into administration.

Administrators appointed to handle the Kent-based firm, from the Manchester office of BDO Stoy Hayward, said falling demand for carpet and flooring had hit the business.

Around 1,500 staff work for the company at 217 stores throughout the country.

But chief executive Clive Hutchings has struck a deal to buy 51 shops and the Allied Carpets insurance inspection business through a new firm Allied Carpets Retail, safeguarding 400 jobs.

Of the North West stores only the Blackpool site has been acquired in this deal leaving 15 stores in the region and a Bolton warehouse employing 90 staff among the assets covered by the administration.

BDO said customer deposits are safe and outstanding orders will be fulfilled from all stores. All staff wages will be paid on the normal payment dates.

BDO restructuring partner Dermot Power said: “Allied Carpets is a well established brand in the marketplace but like many companies, has suffered because of the economic climate and difficult trading conditions.

“The stagnation of the housing market has meant that fewer people are buying carpets and flooring. We’re pleased to have safeguarded the future of 51 stores and more than 400 jobs. 

“We are currently working to secure a going concern sale of the remaining stores in the Allied Carpets portfolio.”