Allied Carpets to lose 850 jobs

Allied Carpets went into administration in July

Allied Carpets is to make 850 people redundant after going into administration and closing 142 stores.

Administrator BDO Stoy Hayward said it had not been able to sell the 142 outlets because of retailers' "struggle" in this economic climate.

The company went into administration after the housing slowdown saw demand for carpets and flooring drop.

In July, the firm sold 51 of its 217 stores and its insurance inspection business, which saved 400 jobs.

But this represents less than a third of the original 1,500-strong workforce employed by Allied Carpets.

Stores closing include those in East Kilbride, Falkirk, Dundee, Great Yarmouth, Brighton, Oxford and Swansea.

The chain had 217 stores when it went into administration, a headquarters in Kent and a distribution centre in Lancashire.

"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," said Dermot Power, business restructuring partner at BDO.

"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."