Floors-2-Go goes under

Flooring chain Floors-2-Go has gone into administration after becoming the latest victim of the struggling housing market.

Administrators of the Midlands-based laminate specialists has closed 41 stores, including those at Wolverhampton and Walsall, as the credit crunch was being felt sharply in the home improvement sector.

The Birmingham-based group, the UK's biggest wood and laminate flooring retailer, was forced to take action on Monday evening.

Administrators Kroll immediately closed just under a third of the chain's 132 branches and cut 97 of the 450 staff.

The stores in Bilston, Brierley Hill, Cannock, Dudley, Kidderminster and Telford remain open for the time being. The administrators were confident of also keeping open the company's five Birmingham shops.

Kroll partner Fraser Gray said sales had been hit by the depressed housing market and a resulting fall in home improvement spending.

"Retailers are battling a particularly hostile trading environment at present, and it is clear that the pain is being felt acutely in the home improvements sector," he said.

But he added that the business would continue to trade while administrators weighed up the options for the retailer.

"Floors-2-Go has a strong brand, a nationwide network of stores, an established online presence and a contracts division, so despite the harsh trading conditions, we remain hopeful of selling the business as a going concern," he said.

The company began as a family business in Birmingham in 1999.

It floated on the London stock market in 2004, evolving from cash and carry-type warehouses to retail superstores in prime high street and retail park locations.

It was bought for £52.4 million in December 2006 by directors and private equity firm Alchemy Partners.

It is also a major stand sponsor of Walsall FC.