Harveys set for supply shake-up

Homestyle will prune 130-store Harveys' supplier base as new management tries to reverse the fortunes of the faltering chain.

Finance director Tim Kowalski intends to forge closer ties with key suppliers, to work on product innovation and lead times. He said 'basic retail skills' that had been absent would be used to push sales per sq ft from£124 to the industry average of£175.

The retailer is selling its beds business to focus on Harveys. The incumbent management team is likely to be involved in the sale.

This week, Homestyle posted a full-year loss of£107.8 million on a turnover from continuing businesses of£379.5 million.