Homestyle plans to sell Bensons Beds

13 April 2012

STRUGGLING furniture group Homestyle has put its Bensons Beds business up for sale in a move that could raise more than £130m for the cash-strapped company.

News of the proposed disposal came as the group revealed it had plunged into the red by more than £100m, hit by hefty exceptional losses on the recent sale of its Rosebys textile division and goodwill writedowns on its Harveys furniture business.

At the pre-tax level, losses totalled £107.8m in the 53 weeks to 1 May, up from £9.8m the previous year. And profits at the trading level were also sharply lower, at £18.3m against £35.1m last time. The dividend is axed.

Homestyle is Britain's biggest specialist beds retailer, taking in the Bensons, Sleepmasters and Bed Shed brands. It has a chain of 428 shops, producing sales of just over £150m last year. It is the best-performing part of Homestyle, making operating profits of £13.5m, an increase of 15.7%.

New Homestyle chairman David Brock said a full strategic review of Harveys is now under way.

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