Bensons for Beds and Harvey’s credit cover has been cut in the wake of parent company Steinhoff’s accounting scandal, Retail Week can reveal.
The two furniture retailers’ credit insurance has been reduced shortly after Steinhoff stablemate Poundland’s cover was downgraded last week.
The news comes ahead of a crunch meeting of Steinhoff and its lenders and credit insurers, including Atradius and Euler Hermes, in London today to quell concerns about the business’ long-term viability.
Steinhoff UK boss Stuart Machin, who runs Bensons for Beds and Harveys, told Retail Week: “Credit insurance has been cut and we are working with the banks on credit insurers directly and dealing with suppliers on an individual case-by-case basis.
“We have two great brands and are in the very early stages of a new strategic plan which the team and I are focused on.
“We have a big opportunity ahead of us with both Harveys and Bensons. Bensons has always been a strong business and in Harvey’s there is much upside. For today it is very much business as usual for my team.”
According to an internal memo sent to the two businesses’ employees and seen by Retail Week, Harveys and Bensons for Beds’ “short, medium and longer term” strategies have not been impacted by Steinhoff’s share price crash and the subsequent fall-out.
The retailers are rolling out a renewed dual-fascia store format with openings in Wednesbury and Farnborough next week, are launching a six-day delivery plan for orders and have said ecommerce is “trading extremely well”.
The homeware retailers’ festive TV advertising campaign to promote their seasonal offers will also launch on December 23.
Steinhoff stablemate Poundland also sent an internal memo to reassure staff this week in the wake of the crisis engulfing its parent company, in which it stressed that the reduction in its credit insurance was expected to have “no impact on the business in terms of supply”.