Allied Carpets is to slash hundreds of jobs as early as next week as the retailer starts to close stores, according to reports.

Staff have told The Sun that stores could close in a matter of days. One employee said: “Our manager has told us we are shutting.”

As revealed by Retail Week, the second largest floorings retailer in the UK filed notice of intention to appoint an administrator for its property arm last week. BDO Stoy Hayward is lined up to handle the administration.

It is thought as many as 80 stores out of 212 could close in an attempt to shore up the struggling retailer, yet Allied said “no decisions have been taken” on store closures.

The retailer has been finalising terms of its refinancing as well as completing a strategic review of the business.

Allied was bought by offshore fund Sigma Capital in March. It later emerged this fund was backed by Hilco.

Hilco has been linked with distressed retailers in the past 12 months. It tried to buy Woolworths and then acted as adviser to administrator Deloitte when the now defunct retailer launched its closing down sale.