The proprietor of the Harveys furnishings chain and Bensons for Beds is closing in on a restructuring that’s anticipated to contain the appointment of directors within the coming weeks.
Sky Information understands that Alteri Buyers, a specialist backer of troubled retailers, is making ready to reacquire Bensons for Beds by a pre-pack insolvency course of.
That would imply that the Harveys chain, which immediately employs practically 700 folks, faces being liquidated until another purchaser emerges, in keeping with trade sources.
In March, Sky Information reported that PricewaterhouseCoopers, the skilled providers agency, was being lined as much as oversee an administration of the group.
In whole, Harveys and Bensons for Beds chains commerce from 269 shops throughout the UK and make use of near 2700 folks.
Bensons for Beds, which was based within the 1950s, is the most important mattress retailer within the UK by retailer quantity and the third-largest by income, in keeping with a earlier company assertion.
The 2 chains have been acquired by Alteri little greater than months in the past, with the investor’s chief government, Gavin George, saying that it was “excited to assist Mark [Jackson, the chief executive] and the crew on a profitable turnaround of the enterprise”.
Mr Jackson added that Alteri’s experience would “assist turbo-charge our plans to drive the efficiency of the group”.
Blue Group, the chains’ guardian firm, had been owned by Steinhoff Worldwide, the troubled South African retail holding firm, since 2005.
It additionally includes a considerable manufacturing arm that provides different excessive avenue retailers.
In whole, the group recorded gross sales final yr of greater than £500m.
If confirmed, an administration course of for Blue Group would come amid a deluge of economic restructurings involving main excessive avenue names.
Debenhams, Laura Ashley and Cath Kidston are among the many retailers which have fallen into insolvency, whereas chains together with New Look and Poundstretcher are in talks with landlords about lowering their hire obligations.
A spokesman for Alteri declined to touch upon Friday.