JOBS AGONY AS FURNITURE GIANT FOLDS
CEO emails staff to tell them firm has been put into administration
FURNITURE giant Harveys has gone into administration, putting hundreds of jobs in Scotland at risk.
The firm’s parent company, Blue Group, announced the move yesterday to stunned staff.
The news was broken to furloughed workers in a text urging them to check their emails.
Harveys has about 150 stores in the UK. It is believed hundreds of employees in Scotland, split between retail stores and warehouses, will be affected.
Blue Group, which owns both Harveys and Bensons for Beds, was bought over by Alteri Investments in recent months.
Bensons will be saved under a restructuring plan but 24 of its 270 UK outlets will close – including nine shared locations with Harveys, one of which is in Glasgow.
Harveys will continue to trade while a buyer is sought by administrators PwC.
Most Harveys stores were due to re-open today, with many furloughed workers set to return.
In the email, Blue Group CEO Mark Jackson wrote: “Despite our operational capabilities and the injection of additional capital, trading was challenging for us prior to lockdown. The retail market in which we operated was difficult and uncertain with customers reining in spending.
“Like most other retailers, the impact of coronavirus has made a difficult situation even more challenging. Despite our best efforts, the business was, and unfortunately remains, in a difficult position .
“We’ve now concluded we have to take immediate action to ensure the part of our business with the brightest prospects can rebuild as we emerge from Covid-19.
“It is with heartfelt regret that I must tell you the Group has taken the difficult decision to call upon administrators.” One worker said: “Most of us had been furloughed and we knew things were difficult. But it is still a devastating blow for people with mortgages to pay and families to feed and all the uncertainty we’re in at the moment.” Zelf Hussain, joint administrator and PwC deals partner, said: “Following our appointment, we 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, while preserving 1899 jobs.
“The Harveys furniture-related retail and manufacturing businesses will continue to trade in administration while options are explored. A total of 1330 employees have been retained to support this trading period.
“It was regrettably necessary to make 240 employees redundant.”