Carpet & floor covering specialists United Carpets has been acquired by its holding company just hours after entering pre-pack administration, it has been announced today.
United Carpets Group made an offer for the business and assets of its trading subsidiary United Carpets (Northern) Limited and successfully secured 73 stores, two warehouse premises and the head office site.
The acquisition was secured by administrators Begbies Traynor, which was appointed by the business earlier today and worked quickly to secure a deal.
Initially, the recovery specialists were called in by the retailer to assess its overall performance following disappointing performances from some franchised and corporate stores though circumstances were such that administration was the only viable option.
Last week, Begbies Traynor warned that retailers ought to prepare for a “perfect storm” as last Saturday‘s quarterly rent day deadline loomed, adding to the financial distress many have faced following a disappointing Olympics trading period.
Earlier this week sports retailer JJB Sports, which fell into administration at the end of last month, sold 20 of its stores to rival Sports Direct, saving around 550 jobs across the country and administrators at United Carpets will be hoping for a similar outcome in this latest case.
Lila Thomas, Partner at Begbies Traynor, explained that the company‘s review drew attention to the retailer‘s inability to meet outstanding payments.
“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 of the company became inevitable.
“The subsequent sale was a positive result and has safeguarded the jobs of those working for the company.”