// Harveys and Bensons for Beds owner Blue Group saves 1900 jobs with financial restructuring plan
// 1000 jobs currently remain at risk
// Bensons for Beds is to be bought back by its existing owner Alteri Investors
Harveys furniture chain has reportedly collapsed into administration with the immediate loss of 240 jobs, with more than 1300 others at risk.
The owner of Harveys and Bensons for Beds, Blue Group, has saved almost 2000 jobs with its new restructuring plan, but 1000 jobs currently remain at risk.
Blue Group is to be broken up in a financial restructuring that will save at least 1900 retail industry jobs that were left hanging in the balance by the Covid-19 crisis, Sky News reported.
The company appointed PwC as administrator on Tuesday.
Meanwhile, Harveys’ sister company Bensons for Beds is to be bought back by its existing owner, Alteri Investors, through a pre-pack administration that is expected to be confirmed on Tuesday.
Between 150 and 175 of Bensons’ stores are expected to remain open under its revamped ownership, meaning that roughly 50 will close permanently following the deal.
In total, the group employs around 3000 people, meaning more than 1000 employees have yet to be given assurance.
Blue Group chief executive Mark Jackson wrote to staff that “immediate action will be taken to ensure the part of our business with the brightest prospects can rebuild as we emerge from Covid-19”.
Under the pre-pack with Alteri, Bensons will become a standalone, vertically integrated business with the group’s bed manufacturing operations sitting within the new company.
Alteri is expected to fund a further £25 million into the company to invest in technology.
After Alteri purchased it earlier this year, Blue Group was previously owned by Steinhoff International.