HARVEY'S furniture store has collapsed into administration but partner retailer Bensons for Beds has been saved.

PWC was appointed administrators on Tuesday.

It says the Bensons arms of the business has been sold, protecting almost 2,000 jobs.

But no buyer has yet been found for Harvey's.

The firm has a store on Riverside Retail Park in Warrington and a Bensons for Beds on Winwick Road.

The transaction largely relates to the Bensons for Beds business but the Purchasers will honour any open orders placed before 30 June 2020, including those relating to the Harveys business. 

The Harveys furniture stores and those manufacturing facilities not acquired by the Purchasers will continue to trade in administration whilst options are explored.  

The Group is a vertically integrated UK retailer that operates under a multi-channel strategy through stores, online and telesales. The principal activities of the Group is the manufacture, distribution and retail of beds/mattresses and home furniture products with annual revenues in excess of £600m. It operates from 262 retail stores, 4 manufacturing sites and a delivery network of regional distribution centres. The sale of the Bensons for Beds business has preserved 1,899 jobs.

Zelf Hussain, joint administrator and PwC Deals partner, 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.

“The Harveys furniture related retail and manufacturing businesses will continue to trade in administration whilst all options are explored. 1,330 employees have been retained to support this trading period.

“It was regrettably necessary to make 240 employees redundant due to the economic position of the Group. We will make every effort to help those affected at this difficult time by liaising with the Redundancy Payments Service and Job Centre Plus.”