Retailer Allied Carpets has slashed as many as 850 jobs and locked 142 stores, citing weak demand for its products.

However, BDO Stoy Hayward's business restructuring partner, Dermot Power said, "Although the stores are closed, we are still in negotiations with a number of interested parties."

BDO Stoy Hayward, the administrator said that it had 55 stores to Clive Hutchings, former CEO of Allied Carpets. The company is further looking to offload twenty outlets, which remained operational.

Only last month, Allied Carpets had filed for the bankruptcy protection.

Speaking on the 21,000 outstanding orders, administration said that they had already fulfilled 16,000 outstanding orders and would be able to complete the rest.

Recession played a key role in slashing the demand for carpets.