Future of Fife stores uncertain as furniture chain enters administration
A furniture store, which has two branches in Ffie, has gone into administration.
More than 1000 jobs are at risk UK-wide as the Blue Group, which owns Harveys and Bensons for Beds, said cash flow pressures meant it was no longer able to trade.
The move leaves the future of its stores in Kirkcaldy and Dunfermline uncertain.
Administrators PwC immediately sold certain parts of the group back to its existing owner.
The administrators said the new group will trade as Bensons for Beds only, preserving 1899 jobs.
Harveys will continue to trade in administration, with 1330 employees across the country at risk of losing their jobs. They have currently been retained to support the period of trading, while 240 staff have been made redundant so far.
And it was confirmed that any open orders placed before June 30, including those relating to the Harveys business will be honoured.
It is anticipated that between 150 and 175 of Bensons’ stores will remain open under the revamped ownership, with around 50 closing permanently.
However it is not yet known which will remain open.
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 conmpleted a sales process for certain business and assets of the group.
“This sale puts the ongoing business on a firmer financial footing in its restructred form as Bensons for Beds only model, whilst preserving 1899 jobs.
“The purchasers will be working with the existing management team to continue to grow and develop the business.”