Allied Carpets puts store arm into administration

ALLIED Carpets, the retail chain that was taken under the control of Hilco earlier this year, is placing the unit that owns the leases on its stores into administration.<br /><br />The administration of Allied Carpets Properties, by City accountancy BDO Stoy Hayward, is part of a wider restructuring that is likely to see the group slim down dramatically in size as it fights to weather the recession. The group is also currently restructuring debt and it is thought the sale of some of its leases could help reduce the debt pile. <br /><br />Many of the firm&rsquo;s 218 stores may close down although the group is thought to be keen to retain core outlets. The property unit is making losses of around &pound;2m a month.<br /><br />The carpet sector has been fighting for survival as consumers have put off making larger discretionary purchases as the credit crunch has worsened. <br /><br />The group is owned by Sigma Capital, a fund owned mostly by stricken retail specialist Hilco.