United Carpets Group has acquired the business and assets of its trading subsidiary United Carpets (Northern) Limited out of a pre-pack administration.
Lila Thomas and David Acland, partners at the Preston office of Begbies Traynor were appointed joint administrators of the business on 4 October and the acquisition was concluded shortly afterwards.
Begbies Traynor was initially instructed to review the existing business due to increasing concerns regarding the performance of certain franchised and corporate stores. The review highlighted the fact an increasing number of outlets were loss-making and unable to meet outstanding payments.
Speaking of the deal, Lila Thomas partner at 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.
“Attempts were made by the company to renegotiate lease terms, however, these proved unsuccessful. The administration of the company became inevitable. The subsequent sale was a positive result and has safeguarded the jobs of those working for the company.”
The United Carpets Group was approached to make an offer for the business and assets out of administration and was successful in securing 73 stores as well as the head office site and its two warehouse premises.
United Carpets is one of the country’s leading retailers of floor coverings. It was listed on the Alternative Investment Market (AIM) in 2005.
Matthew Brown and Ben Done from the Leeds office of DWF advised the purchasers, while John Joyce, Matthew Barker and Jason Scott of Addleshaw Goddard provided legal advice to the joint administrators.
Having entered a career in insolvency straight from University, Ian has been part of Begbies Traynor Group since 2006. He initially worked in the personal insolvency team before moving to the corporate team at Preston in 2008. He qualified as an IP in 2010 and has dealt with a number of appointments in the North West area.