A flooring company with a store in Newcastle has collapsed into administration, with more than 200 jobs to be lost.

The Floor Room Ltd, which has a concession in John Lewis in Eldon Square, fell into administration on August 9.

The firm had 201 employees, with 196 of those set to be made redundant.

It comes after flooring company Carpet Right also called in administrators. The Floor Room is was said to be “operationally reliant” on Carpetright.

Founded in 2003, it had 34 concessions in John Lewis stores across the country which have all closed with immediate effect. No further orders will be fulfilled.

Administrator Adam Seres told the Glasgow Times: “The Floor Room depended on its sister company, Carpetright, for much of its trading infrastructure.

“Following the latter’s insolvency, management worked to find an alternative solution to preserve the Floor Room’s business as a going concern. However, its financial position meant that it was impossible for the business to continue trading.

“It is with sincere regret that this outcome has had to result in the redundancies of the majority of employees.

“We are committed to helping those affected and will work hard to ensure redundancy claims are processed as quickly as possible.

"We know this is an unsettling time for many of those affected, and want to thank all the staff for the support they have given the company in these difficult circumstances.”

A John Lewis spokesperson added: "The Floor Room, which runs a carpet and flooring service inside a number of John Lewis stores, has gone into administration. 

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"As the Floor Room is not owned by John Lewis, we are now working urgently to understand what this means for The Floor Room’s customers and colleagues in what is a rapidly evolving situation.

"We know that this will be very worrying for customers of the Floor Room. If anyone has an outstanding order with the Floor Room, we are committed to doing everything in our power to help and support them."

More information is available from the administrators’ website on www.pwc.co.uk/thefloorroom.