U.K. Flooring Retail Giant Reportedly for Sale

London, England, Dec. 24, 2008--Allied Carpets is to be sold by its French owner, according to the Financial Times.

The floor-covering retail giant, which employs around 1,600 people and has over 220 stores in the U.K., is being offered for sale by its parent company Tapis Saint Maclou.

Homeware retailers have suffered particularly in the economic downturn as a result of the sinking property market.

Tapis decided on the sale after tiring of propping up the loss-making carpet chain, the FT said.

But Allied, more than 50 years old, is in no immediate danger as it is supported by Tapis, Europe's largest carpet retailer.

Allied made an operating loss of £6.8 million last year on sales of £206.8 million and some industry observers expect it to post a loss of up to £20 million this year, according to the FT.

Tapis appointed an investment bank Lazard to find buyers, the paper said.

It added the decision to sell now, when valuation would be at its lowest level for years, would be taken as a sign that performance in the sector would deteriorate still further.