An offshore investment fund has acquired ailing Allied Carpets identifying long-term value in the troubled retailer.
The UK's second-largest flooring chain has been bought by Sigma Capital Investments which is likely to want to close some stores, according to The Independent.
While the offshore fund is backed by wealthy US investors, the deal highlights investment funds are willing to invest in troubled UK retailers.
The deal comes a day before the firm's second-quarter rent day and an £8m bill.
The chain was owned by Tapis Saint-Maclou and controlled by the Mulliez family. The French owners put Allied Carpets up for sale before Christmas and hired Lazard to handle the process.
Former owner of collapsed chain MFI, private equity firm Merchant Equity Partners as well as the private equity arm of Hilco originally expressed an interest in buying the carpet retailer.
The French owners are understood to have injected £15m of working capital into Allied Carpets in recent months and more funding was needed.
Competing with market leaders Carpetright, Allied Carpets has reportedly not made an operating profit for eight years. In 2007, the firm made an operating loss of £6.8m on total sales of £206.9m.
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