Axminster Carpets Falls Into Administration

Axminster Carpets, a supplier to the royal family, has fallen into administration for the second time in seven years.

The 265-year-old carpet-maker had been seeking a rescue deal for several weeks and was placed into administration on February 19th, after it failed to find a buyer for the whole business.

Duff & Phelps were appointed as administrators and sold Axfelt - Axminster's underlay division - to competitor Ulster Carpets, which is understood to be looking to grow the Devonshire business and protect jobs at the existing Axminster Carpets base.

Wilton Flooring is expected to purchase the Axminster Carpet Shop.

The manufacturer suffered losses of nearly £3m and £1m in 2017 and 2018, respectively, according to documents filed at Companies House.

Around 80 of the 90 employees have been made redundant, with the remaining staff being kept on to fulfil existing orders.

Benjamin Wiles, joint administrator at Duff & Phelps, said: "Despite a number of expressions of interest no acceptable offer for the core carpet business has been received, leaving no option but to appoint administrators while the remaining options are explored,

"The administrators have had to come to the decision that the best possible option for maximising the realisations for the company’s creditors was the immediate sale of its underlay business to Ulster Carpets and the redundancy of the majority of the existing workforce. 

"We are continuing to explore all potential options for all or part of the remaining business and assets including the historic brand name itself."

Source : Insight DIY Team

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