UK furniture retail chain Harveys has entered into administration amid the coronavirus pandemic.
As part of this decision, Harveys owner Blue Group is closing around 20 stores, which will lead to 240 job losses.
European retail sector investor Alteri Investors acquired Blue Group from Steinhoff International Holdings.
Blue Group is also the owner of Bensons for Beds, upholstery and bedding manufacturers Relyon, Formation Furniture and subsidiaries.
The group produces, distributes and retails beds / mattresses and home furniture products. With more than £600m in annual revenues, it operates from 262 retail stores, four manufacturing sites and has a delivery network.
PwC’s Zelf Hussain, Peter Dickens and Yulia Marshall have been appointed as joint administrators of the group.
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Some of the group’s business and assets have been sold to Bensonsforbedsretail, Bensonsforbedsmanufacturing and BlueGroup Propoco after their appointment.
Joint administrator and PwC Deals partner Zelf Hussain 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.”