- Friday, 14 August 2009Allied Carpets is to make 850 workers redundant following its entering into administration and failure to sell its remaining 142 stores.
With the jobs market significantly depleted, the losses incurred at the carpet giant could result in a number of ex-employees struggling financially on their departure.
The risk of personal insolvency and bankruptcy is heightened as a result of unemployment and with the level of Britain's unemployed rising, the reliance on
individual voluntary agreements (IVAs) could reasonably be expected to increase.
Earlier in the year, the firm sold 51 of its 217 retail outlets and managed to save 400 jobs.
Dermot Power, business restructuring partner at administrator BDO Stoy Hayward, said the problem with the retailer finding store buyers had been a perceived lack of future market potential.
He said: "Although we have had a strong level of initial interest in the portfolio, the common concern has been around the lack of visibility of future turnover."
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