Allied Carpets has entered administration, with the immediate sale of its insurance inspection subsidiary and 51 of its outlets to new company Allied Carpets Retail Limited. The move has saved about 400 jobs, but a further 1,100 are at risk and the rest of the stores are now in the control of the administrators BDO Stoy Hayward.
Allied Carpets Retail Limited was set up by Clive Hutchings, Allied's chief executive, who said the retail and inspection businesses have been given "the opportunity to strengthen their respective market positions, build on the Allied brand and ensure an ongoing commitment to unrivalled customer service."
Consumers' reluctance to spend money on big ticket items, including carpets, is largely due to the slowdown in the housing sector.
The administrators said that existing customer orders will be honoured and deposits will be protected.
The remainder of the stores will be sold as a going concern by BDO.
Behind Carpetright, Allied Carpets is the second largest carpet retailer in Britain. Carpetright has also suffered in the recession, and reported a 72% fall in its profits after sales dropped by 7.4% on the the previous year.
