United Carpets latest retailer floored by consumer fears

United Carpets plunged into administration yesterday, the latest retailer to fall victim to the consumer recession, and said it would close stores where rent reduction agreements could not be reached.

The flooring and beds firm closed a number of stores earlier this year after warning that many of its franchises had found trading “very challenging” and yesterday said the fate of the remaining 72 would soon be decided.

The company said it had appointed administrators Begbies Traynor and sold the firm to a wholly-owned subsidiary.

“The board is disappointed at the need to take these steps but is confident that the core of locations remaining once the restructure is concluded will provide the foundation for a successful and sustainable business,” said the company in a statement.

United Carpets joins a growing list of retail failures this year, including outdoor goods firm Blacks Leisure and discount fashion chain Peacocks, which both went into administration, and JJB Sports, which closed the bulk of its stores and axed around 2,200 jobs earlier this week.

Many retailers across Europe are struggling as consumers’ disposable incomes have been squeezed by rising commodity prices, muted wage growth and government austerity measures, Confidence has been sapped further by the eurozone debt crisis.

However, some have thrived as they have developed online sales and trimmed their stores portfolio.

United Carpets’ larger rival Carpetright posted a 1.7 per cent rise in first-quarter sales in July.

Shares in United Carpets were suspended in August at 3.125p.