Friday, October 5, 2012

News: Pre-pack deal as United Carpets goes into administration


Rotherham-based United Carpets, the second largest chain of specialist retail carpet and floor covering stores in the UK, has been acquired out of a pre-pack administration.

The deal saw United Carpets Group acquire the business and assets of its trading subsidiary United Carpets (Northern) Limited.

Lila Thomas and David Acland, partners at the Preston office of Begbies Traynor were appointed joint administrators of the business on October 4 and the acquisition was concluded shortly afterwards.

The administrators have confirmed that jobs at the firm's head office in Bramley have been transferred to the new company.

In August, United Carpets had its shares temporarily suspended after admitting it would not be able to publish its full-year results on time.

With 85 stores, action was taken in June following a period of "extremely challenging" trading conditions for retailers.

Begbies Traynor was initially instructed to review the existing business due to increasing concerns regarding the performance of certain franchised and corporate stores. The review highlighted the fact an increasing number of outlets were loss-making and unable to meet outstanding payments.

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 of the company became inevitable. The subsequent sale was a positive result and has safeguarded the jobs of those working for the company."

The United Carpets Group was approached to make an offer for the business and assets out of administration and was successful in securing 73 stores as well as the head office site and its two warehouse premises.

In a statement to the stock exchange, the AIM-listed firm 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."

Matthew Brown and Ben Done from the Leeds office of DWF advised the purchasers, while John Joyce, Matthew Barker and Jason Scott of Addleshaw Goddard provided legal advice to the joint administrators.

United Carpets website

Images: United Carpets


Supported by:
More news...

  © Blogger template Newspaper III by 2008

Back to TOP