Allied Carpet Properties in administration and 51 shops sold to retail arm

BDO Stoy Hayward has been appointed administrator today to Allied Carpet Properties. After the appointment, the 51 stores and Allied Carpets' insurance inspection business were sold to Allied Carpets Retail. The disposal protects around 400 jobs. The remaining 217 stores will be traded until a buyer is found.

It is hoped some additional stores will also be acquired by the new business over the next two weeks, subject to ongoing negotiations with existing landlords.

Customer deposits have been safeguarded, and outstanding orders, will be fulfilled from all stores.

Dermot Power, BDO Stoy Hayward business restructuring partner, 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. Customers who have any questions about purchases should contact their local store."

Clive Hutchings, CEO at Allied Carpets Retail Limited and Allied Carpets Inspections, said: "I am pleased that we have secured the future of the Allied Carpets brand through this sale and have the working capital to provide continuity and security for our customers and a significant proportion of staff.

"Allied Carpets is a good business, and through this sale and additional funding, both the retail and inspections businesses now have the opportunity to strengthen their respective market positions, build on the Allied brand and ensure an ongoing commitment to unrivalled customer service".