You are using an older browser version. Please use a supported version for the best MSN experience.

Furniture chain Harveys stops taking new orders as it falls into administration with loss of 240 jobs

This Is Money logo This Is Money 1 day ago Camilla Canocchi for Thisismoney.co.uk
Harveys store © Getty Harveys store

Harveys has become the latest casualty of the coronavirus pandemic as the furniture chain fell into administration, with the immediate loss of 240 jobs and hundreds more in danger. 

All Harveys stores, around 20 and mostly in outer London, will continue to trade for the time being as administrators PwC look for a buyer for the business and its three manufacturing sites. 

The company's website says they are not taking any new orders, but claims that 'existing orders will be delivered as communicated'.

In Pictures: The 20 industries that will never be the same after coronavirus (GoBankingRates)



The chain, which is owned by private equity firm Alteri Investors, was already struggling even before the coronavirus pandemic struck.

'A combination of structural issues and Covid means we are going to have to leave behind the underperforming part of the business', said Alteri chief executive Gavin George.

Harvey's sister furniture chain, Bensons for Beds, also fell into administration, but was immediately bought back by Alteri in a 'prepack deal'. 

a store front at day: Collapsed: All Harveys stores, around 20 and mostly in London, will continue to trade for now and existing customer orders will be honoured © Provided by Daily Mail Collapsed: All Harveys stores, around 20 and mostly in London, will continue to trade for now and existing customer orders will be honoured

Under the deal, they plan to keep up to 175 of Bensons for Beds's 242 stores as well as its Huntingdon manufacturing operation and nearly 1,900 jobs. 

'The restructuring, whilst obviously difficult for Harveys' employees, will safeguard more than half the group's workforce and is a necessary milestone on Bensons' journey to becoming a market-leading beds retailer with a strong omnichannel presence,' said Alteri's boss.

Zelf Hussain, joint administrator at PwC, said the two furniture chains, and especially Harveys, had faced 'cashflow pressures' in recent months, which were 'exacerbated by coronavirus on the supply chain and customer sales'.

a screenshot of a cell phone on a table: Harveys website says they are no longer taking new orders but will honour existing orders © Provided by Daily Mail Harveys website says they are no longer taking new orders but will honour existing orders

'It has not been possible to secure further investment to continue to trade the group in its current form,' he added.

Alteri's boss added: 'We will continue to work closely with the management team on the turnaround of the business which we believe can have a bright future, despite the challenges facing the retail industry, including the long-term impact of the coronavirus pandemic.'

_______________________________________________

Stay at home as much as possible to stop coronavirus spreading - here is the latest government guidance. If you think you have the virus, don't go to the GP or hospital, stay indoors and get advice online. Only call NHS 111 if you cannot cope with your symptoms at home; your condition gets worse; or your symptoms do not get better after seven days. In parts of Wales where 111 isn't available, call NHS Direct on 0845 46 47. In Scotland, anyone with symptoms is advised to self-isolate for seven days. In Northern Ireland, call your GP.


Gallery: Major company CEOs who worked their way up from the ground (Lovemoney)

Go to MSN Home
AdChoices
AdChoices

More From This is Money

image beaconimage beaconimage beacon