Background
Allied Carpets, the UK’s second largest carpet and flooring retailer, had made significant losses for more than five years, was burdened with a significant number of underperforming stores and was carrying a high central cost base.
Following the decision of its french owners to cease funding the increasing losses and to exit the UK market, the company was offered for sale. However, the historic losses and the level of funding required made the business an unattractive prospect for trade buyers. With no offers on the table and insufficient cash to cover the upcoming rent quarter, it was highly likely that the business would cease trading with the loss of all jobs and the failure to fulfil customer orders.