Ten West Midlands branches of a ­nationwide retail chain have closed as part of cutbacks that have seen 850 jobs axed.

A total of 142 stores have been closed by failed retailer Allied Carpets, including stores in Erdington, Merry Hill, Redditch, Telford, Coventry, Shrewsbury, Stoke, Stafford, Tamworth and West Bromwich.

Administrator BDO Stoy Hayward said it had been unable to sell on the bulk of the flooring firm’s branches amid fears over tough trading.

The future of about another 120 jobs still hangs in the balance as BDO seeks to offload the remaining 20 outlets remaining in administration.

But Dermot Power, BDO Stoy Hayward business restructuring partner, said he remains hopeful of selling on the remaining stores that are still trading and said it was also in negotiations over deals for the premises of those stores included in the recent wave of closures.

He said: “Although we have had a strong level of initial interest in the portfolio, the common concern has been around the lack of visibility of future turnover.

“In addition, many of those who operate in the same industry haven’t been comfortable taking the step to extend their current portfolio in such a tough trading climate.”

Allied Carpets fell victim to the housing market slump as fewer home sales dented demand for flooring and carpets.

But former Allied chief executive Clive Hutchings is hoping to revive the brand after agreeing a deal to buy 55 of the stores and the insurance inspection arm.

Allied Carpets went into administration last month, with 21,000 orders still outstanding.

BDO said it was making good progress finishing the orders, with 16,000 fulfilled so far, and aims to ensure all are completed eventually.

The chain had 217 stores when it went into administration, a headquarters in Kent and a distribution centre in Lancashire.