Administrators called in by owner of Harveys furniture stores – which has branch in Highlands – after downturn in sales during the coronavirus lockdown
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The owner of furniture chain Harveys, which has a branch in Inverness, has called in administrators with the immediate loss of 240 jobs.
It is understood that around 20 Harveys stores could be closed if the administration process does not work out.
Bensons for Beds, which is part of Harveys' owners Blue Group and is also based in the Telford Street Harveys outlet, will also see around 50 of its outlets close, leaving between 150 and 175 open.
However it is not yet known which branches will be affected as part of the administration process.
The move follows the three-month lockdown with a subsequent downturn in sales following the coronavirus pandemic.
Blue Group brought in PricewaterhouseCoopers as administrator yesterday and the search is on for buyers for the business and its three manufacturing plants.
Harveys is not taking any new orders but the company has promised to honour existing ones, according to its website.
Alteri Investors, which owns Blue Group, has taken the decision to restructure the business with the aim of making Bensons a standalone business.
Gavin George, Alteri chief executive. said: "A combination of structural issues and Covid means we are going to have to leave behind the under-performing part of the business."
In a statement a Harveys spokesman said: "We’re putting our feet up for a while and currently not taking any new orders. Existing orders will be delivered as communicated."
