Jobs loss fear at United Carpets
United Carpets today warned of store closures and job losses across the country after its main trading arm collapsed into administration.
The flooring and bed chain employs more than 400 staff in 72 stores, including a large branch in Watling Street, Cannock and Stafford Street, Wolverhampton.
Its trading arm, which went into temporary administration, was immediately bought back out by the firm which is now holding talks with landlords to reduce rents at its stores.
But United Carpets said landlords had so far been unwilling to lower rents and confirmed it would need to shut stores where agreement cannot be reached.
The news comes after it announced last month it was closing about 14 loss-making stores, blaming tough market conditions and "very challenging" trading.
The chain joins a growing list of retailers who have fallen victim to difficult high street conditions.
JJB went into administration on Monday with the loss of 2,200 jobs and Optical Express announced 40 store closures earlier this week after a subsidiary was also placed in administration.
Lila Thomas, partner at United Carpets administrators 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."
The firm said today a review of the business had found that a "significant" number of stores would be unable to trade without "substantial" rent payment reductions.
