Allied Carpets falls into administration, but quick sale saves 400 jobs and 51 stores from closure.

Allied Carpets has become the latest victim of the credit crunch as BDO Stoy Hayward announces it has been appointed as Joint Administrators of the ailing carpet company.

However, on the same day the Kent-based carpet group has called in the administrators, 51 of its stores – along with its insurance inspection business – have been sold to Allied Carpets Retail Limited.

The sale has resulted in the immediate protection of 400 jobs. The joint administrators also confirmed that customer deposits have been safeguarded, along with any outstanding customer orders. 

In a statement from the Administrators announcing the news, 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.”

Clive Hutchings, CEO at Allied Carpets Retail Limited and Allied Carpets Inspections Limited, commented: “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.”