Harveys Falls Into Administration; Bensons For Beds Saved

Furniture chain Harveys has fallen into administration but sister company Bensons For Beds has been saved, it has been announced.

Both Bensons For Beds and Harveys were put up for sale in mid-March by Alteri, which acquired the chains' parent company - Blue Group - from Steinhoff in November 2019.

Earlier this month, Sky News reported that Alteri Investors was planning to re-acquire Bensons For Beds via a pre-pack administration.  Since the administration and buy-back announcement, it has been reported that Alteri is understood to be planning a £25m investment into technology for the Bensons For Beds business.

A statement from administrators PWC said:

Blue Group HoldCo Ltd, Blue Group UK Retail Ltd, Blue Group UK Group Properties Ltd, Serais Investments Ltd, Homestyle Group Operations Ltd, Blue Group UK Furniture Ltd, Formation Furniture Ltd, Blue Group UK Manufacturing Ltd, Relyon Group Ltd, Relyon Ltd, Blue Group UK Beds Ltd, Unitrans UK Ltd, Unitrans Logistics (UK) Ltd,  Unitrans Ltd, Property Portfolio (No 1) Ltd, Property Portfolio (No 11) Ltd, Property Portfolio (No 14) Ltd, Property Portfolio (No 15) Ltd, Property Portfolio (No 17) Ltd, Property Portfolio (No 2) Ltd, Property Portfolio (No 7) Ltd, Property Portfolio (No 8) Ltd 

(together “the Companies” or “the Group”)

Zelf Hussain, Peter Dickens and Yulia Marshall of PwC were appointed as joint administrators of the Companies on 30 June 2020. In addition, Ross Connock of PwC was also appointed as joint administrator of Formation Furniture Limited.

Following their appointment, the joint administrators are pleased to announce the sale of certain business and assets of the Group to Bensonsforbedsretail Limited, Bensonsforbedsmanufacturing Limited and BlueGroup Propoco Limited (“the Purchasers”). The transaction largely relates to the Bensons for Beds business but the Purchasers will honour any open orders placed before 30 June 2020, including those relating to the Harveys business. 

The Harveys furniture stores and those manufacturing facilities not acquired by the Purchasers will continue to trade in administration whilst options are explored.  

The Group is a vertically integrated UK retailer that operates under a multi-channel strategy through stores, online and telesales. The principal activities of the Group is the manufacture, distribution and retail of beds/mattresses and home furniture products with annual revenues in excess of £600m. It operates from 262 retail stores, 4 manufacturing sites and a delivery network of regional distribution centres. The sale of the Bensons for Beds business has preserved 1,899 jobs.

Zelf Hussain, joint administrator and PwC Deals partner, said:

“The Group had been facing increasingly challenging trading conditions in recent months, in particular the Harveys furniture business. This has resulted in cash flow 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.

Following our appointment, we immediately completed a sales process for certain business and assets of the Group. This sale puts the ongoing business on a firmer financial footing in its restructured form as Bensons for Beds only model, whilst preserving 1,899 jobs. The purchasers will be working with the existing management team to continue to grow and develop the business.”

“The Harveys furniture related retail and manufacturing businesses will continue to trade in administration whilst all options are explored. 1,330 employees have been retained to support this trading period.”

“It was regrettably necessary to make 240 employees redundant due to the economic position of the Group. We will make every effort to help those affected at this difficult time by liaising with the Redundancy Payments Service and Job Centre Plus.”

A message on the Harveys website says:

"We’re sorry. Harveys is now under the control of Administrators.

That’s why we’re not taking any new orders online, but if you’ve already placed an order, this will be delivered as promised.

For details on Harveys, please visit www.pwc.co.uk/bluegroup

Queries regarding orders placed with Harveys before 30 June 2020 should be directed to the Purchasers on 0333 222 6800 or at enquiries@bensonsforbeds.co.uk

Further information regarding the administration is available at http://www.pwc.co.uk/bluegroup"

Source : Insight DIY Team and PWC

Image : Imran Khan Photography / Shutterstock.com

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