UK private equity group Alchemy Partners lost £43m (€54m) from its investment in DIY company Floors-2-Go, following the administration and subsequent sale of the portfolio company, a source close to the process has said.

The mid-market buyout firm carried out the original buyout of the laminate flooring retailer in late 2006, in a £64m deal. Alchemy is thought to have put more money into the business since the original takeover.