Begbies Traynor sells United Carpets in pre-pack

A pre-pack administration for United Carpets Group’s main trading subsidiary was vital to safeguard jobs, according to advisers on the deal.

United Carpets (North) went into administration on Thursday with its stores and the majority of its business immediately sold to United Carpets (Franchisor) Ltd, another subsidiary of the listed carpets retailer.

Lila Thomas and David Acland, partners at the Preston office of Begbies Traynor, were the administrators.

Ms Thomas said: “The administration was a consequence of the challenging economic climate, but also the long-term lease commitments to the landlords of the stores.

“Attempts were made by the company to renegotiate lease terms, however, these proved unsuccessful. The administration of the company became inevitable. The subsequent sale was a positive result and has safeguarded the jobs of those working for the company.”

Law firm DWF advised United Carpets on the deal.

Restructuring partner Matthew Brown said: “We are delighted to have been able to help United Carpets Group with this acquisition which has safeguarded many hundreds of jobs both in the region and nationwide and will provide a solid platform for future growth.”