Hundreds of jobs at risk as United Carpets fails
United Carpets has become the latest retail casualty after it collapsed into administration, putting hundreds of jobs at risk.
The main trading company of the 72-store floor-covering chain appointed Begbies Traynor as administrator yesterday, after a dire performance.
But the retailer immediately tried to safeguard part of the group's future by selling the business and the majority of its assets to a franchise subsidiary of United Carpets in a pre-packaged administration. This means that if United Carpets cannot agree to slash its rental terms with landlords, a substantial number of unprofitable stores could close.
It is the latest job for insolvency practitioners this week after the sportswear retailer JJB Sports collapsed and the opticians chain Optical Express closed 40 shops as its subsidiary plunged into administration.
Lila Thomas, partner at Begbies Traynor, said: "The administration was a consequence of the challenging economic climate, but also the long-term lease commitments to the landlords of the stores.
"Attempts were made by the company to renegotiate lease terms, however, these proved unsuccessful. The administration became inevitable. The subsequent sale has safeguarded the jobs of those working for the company."
United Carpets, which is based in South Yorkshire, said: "The board is disappointed at the need to take these steps, but is confident that the core of locations remaining once the restructure is concluded will, with appropriately adjusted overheads, provide the foundation for a successful and sustainable business."
Shares in United Carpets were suspended in August, as the retailer said a review of its stores had led to the closure of six outlets and a further 17 franchised stores being either taken back into the group or refranchised.
Ian McKellen and Patrick Stewart bromance continues: X-Men star gushes about 'pussy cat' BFF Patrick Stewart
David Cameron stung by jellyfish: PM hurt after ignoring advice of locals while on holiday
South Korea ferry: Vice principal rescued from sinking ship found hanged
Hollande's affair: Catherine Deneuve and Sophie Marceau in war of words over President's relationship with Julie Gayet
Kim Jong-un, crowds and contraband kit: Inside North Korea with the the Pyongyang marathon winner
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 KFC 'sorry' after lesbian couple are kicked out of Bath restaurant for 'heavy petting'
- 2 Dylan Tombides: West Ham confirm 20-year-old striker has died after battle with cancer
- 3 24 people applied for the 'world's toughest job', here are their interviews
- 4 'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
- 5 PFA Player of the Year: Luis Suarez, Daniel Sturridge and Steven Gerrard all nominated as Liverpool dominate award shortlist
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...