Harveys and Bensons for Beds enter administration
Harveys and Bensons for Beds have entered administration, although the latter has been bought back by their owner in a pre-pack deal.
The brands were acquired by Alteri Investors last November from Steinhoff but on Tuesday PwC were appointed as administrators.
The administration has resulted in the loss of around 240 jobs at Harveys, although the administrators are seeking a buyer for around 20 of the furniture retailer’s stores and its three manufacturing sites. A further 1,300 jobs could be lost if a buyer fails to emerge.
Zelf Hussain, administrator at PwC, said: “The group has been facing increasingly challenging trading conditions in recent months, in particular the Harveys furniture business. This has resulted in cashflow pressures, exacerbated by the effects of coronavirus on the supply chain and customer sales. It has not been possible to secure further investment to continue to trade the group in its current form.”
The buyout of Bensons for Beds will involve £25 million being invested in the business as Alteri looks to save between 150 and 175 of the retailer’s 242 stores, as well as its UK manufacturing site.
