UK - Valco backs buyout of Allied Carpets Retail

Deborah
20 July 2009

Tweet
Facebook
LinkedIn
Google plus
Send to

Valco Capital Partners has backed the buyout of Allied Carpets Retail, a company formed from the collapse of flooring retailer Allied Carpets, after the business went into a pre-pack administration and sold 51 of its stores. The new company was set up in partnership with the failed retailer's management, and is also to include Allied Carpets' insurance inspections business.

Allied Carpets, which is owned by Hilco, appointed BDO Stoy Hayward as administrators to the 217-store chain. The move is the final stage of the restructuring planned since Hilco bought the general Allied Carpets business from French carpet retailer Tapis Saint-Maclou earlier this year.

Clive Hutchings, former chief executive of Allied Carpets, will sit on the board of the new company. It has been reported that Allied Carpets Retail has also secured new working capital facilities.

The newly formed company is said to still be in negotiations with Allied Carpet's existing landlords over the acquisition of additional stores if more attractive terms can be agreed.

UK-based Allied Carpets' problems started as a result of the decline in consumer spending and the downturn in the housing market. BDO is still looking for buyers for the remaining 166 stores of the Allied Carpets chain. 1,100 jobs are currently said to be at risk.