Allied makes 850 redundancies after administrators fail to find a buyer for the ailing carpet chain.
Allied Carpets will close 142 stores and make 850 employees redundant after administrator BDO Stoy Hayward was unable to find a buyer for the bulk of the business in the current economic climate.

BDO Stoy Hayward business restructuring partner Dermot Power said: "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."

The chain went into administration on July 17 this year after the slowdown in the housing market caused a slump in demand for carpets and flooring.

On the same day that administrators, Allied announced the sale of 51 of its 217 stores and its insurance inspection business, to Allied Carpets Retail Limited, safeguarding around 400 jobs.

The move caused controversy and British Property Federation commercial policy director Ian Fletcher shunned the pre-pack deal in a statement last month. "Many of Allied Carpets' landlords will essentially be pension funds and so it will be ordinary people who will suffer as the company sheds its liabilities, and then at least part of much of the same company rises from the still warm embers.

"It always seems to be the prudent savers and staff who suffer in these circumstances and not the people who run these companies."