Job fear as carpet company floored

JOBS at the Oldham branch of Allied Carpets are under threat following the collapse of the business.

The store at the Centre Retail Park at the end of Broadway, Chadderton, is continuing to trade as the administrators of AC (UK) Ltd and Allied Carpet Properties Ltd try to find a buyer.

Dermot Power, Shay Bannon and Graham Newton, business restructuring partners at BDO Stoy Hayward, were appointed joint administrators on Friday.

Fifty one stores — but not the Oldham operation — have been sold to Allied Carpets Retail Ltd. Allied Carpets insurance inspection business was sold to Allied Carpets Inspections Limited and these disposals protect more than 400 jobs immediately.

It is hoped that some additional stores will also be acquired by the new business over the next two weeks, subject to a satisfactory outcome in negotiations with the company’s existing landlords.

Customer deposits are safeguarded and outstanding customer orders, including inspections, will continue to be fulfilled from all stores. Customers who have any questions about purchases should contact their local store.

All staff wages — including arrears — will be paid on the normal payment dates, say the administrators.

Dermot Power 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 are 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, chief executive officer at Allied Carpets Inspections Ltd., 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.”