Allied Carpets administrator closes 142 shops

BDO Stoy Hayward – which was appointed administrator on July 17 – said it remains in negotiations with “a number of interested parties” despite the shops being closed. It said it is also continuing to discuss a change of use acquisition, and options with single site acquirers.

Dermot Power, BDO business restructuring partner, said: “The particular struggle of retail businesses in the current economic climate and the stagnation of the housing market have clearly played a role in potential investor nervousness about purchasing stores from the Allied portfolio.

“Although we have had a strong level of initial interest in the portfolio, the common concern has been around the lack of visibility of future turnover. In addition, many of those who operate in the same industry haven’t been comfortable taking the step to extend their current portfolio in such a tough trading climate.”

After BDO was appointed, 51 shops were sold to Allied Carpets Retail. Allied Carpets insurance inspection business was sold to Allied Carpets Inspections. A further four stores – Wimbledon, Gillingham, Ipswich and Cribbs Causeway – have now been sold to Allied Carpets Retail. It is likely that further stores will be sold to Allied Carpets Retail over the next two weeks.

The administrators are continuing to fulfil outstanding customer orders.

Power said: “We remain confident that all outstanding orders will be fulfilled. Upon appointment there were approximately 21,000 pieces of unfulfilled business for which deposits had been taken. We have completed almost 16,000 of these to date.”