Allied Carpets hit by crisis

More than 1,100 jobs at Allied Carpets were at put at risk this afternoon after the firm went into administration.

The group has stores across the West Midlands and the Black Country including Bilston Road, Wolverhampton, Bridgtown, Cannock and High Street, West Bromwich.

Earlier this month reports were circulating that Allied Carpets was to slash jobs within days and start a programme of store closures.

The second largest floorings retailer in the UK filed notice of intention to appoint an administrator for its property arm towards the end of June.

It is thought as many as 80 stores out of 212 could close in an attempt to shore up the struggling retailer.

The retailer was said to have been finalising terms of its refinancing as well as completing a strategic review of the business before this afternoon's announcement. Allied was bought by offshore fund Sigma Capital in March.

It later emerged this fund was backed by Hilco which had been linked with distressed retailers in the past year. It tried to buy Woolworths and then acted as adviser to administrator Deloitte when the now defunct retailer launched its closing down sale.