Afternoon:
9°c
Allied Carpets collapse sparks fears for 1100 jobs
Evening Standard 17 Jul 2009Flooring firm Allied Carpets was today placed into administration, putting 1100 jobs under threat.
Administrators for the firm said they had immediately sold 51 stores and Allied Carpets' insurance inspection business, protecting around 400 jobs.
But the remaining stores are in the hands of the administrators, BDO Stoy Hayward.
Allied Carpets, which had about 1500 workers and 217 stores, has suffered in recent months as the housing-market stagnation stalled spending on its products.
BDO sold the stores and Allied Carpets brand to a firm set up by Allied chief executive Clive Hutchings.
It is hoped this company, Allied Carpets Retail Limited, will also buy some of the remaining stores over the next two weeks.
But BDO said this was “subject to a satisfactory outcome being reached in ongoing negotiations with the firm's existing landlords”.
Hutchings said: “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.”
Customer deposits are protected, BDO said, and outstanding customer orders will be fulfilled.
Reader views (1)
'BDO sold the stores and Allied Carpets brand to a new firm set up by Allied chief executive Clive Hutchings.
It is hoped that this company - Allied Carpets Retail Limited - will also buy some of the remaining stores over the next two weeks.'
Is this another cosy 'prepack'? Did BDO look for offers from anywhere else? If I see my firm heading for trouble, this sort of deal allows me to ring-fence the profitable parts, liquidate the rest, ditching my obligations to staff and creditors, and carry on trading. It's got moral hazard written all over it.
- Mdj E10, london uk, 17/07/2009 15:43
Report abuse
