Luxury kitchen brand Harvey Jones in last-ditch rescue talks as administration looms
Luxury kitchen company Harvey Jones is having “advanced and encouraging” talks over a possible rescue deal as it bids to avoid collapsing into administration.
The firm said it filed a notice of intent to appoint administrators to “protect the business while these discussions remain ongoing, to allow us time to reach a successful conclusion.”
Harvey Jones added it hoped a deal would be agreed in the next few days.
City PM understands that the company enjoyed a bumper January trading period.
However, if a deal is not agreed, the firm is expected to appoint administrators. Interpath Advisory currently working with Harvey Jones.
London-headquartered Harvey Jones has showrooms in Battersea, Bath, Birmingham, Bournemouth, Brighton & Hove, Bristol, Cambridge, Cardiff, Chester, Chichester, Chislehurst, Edinburgh, Guildford, Hampstead, Harrogate, Islington, Marlow, Milton Keynes, Notting Hill, Nottingham, Oxford, Sheen, St Albans, Tunbridge Wells, Wilmslow, Winchester and Worcester.
The company was founded in 1977 and its kitchens are all handmade in Cambridgeshire.
Harvey Jones’ accounts for 2022 are overdue to be filed with Companies House.
For 2021, Harvey Jones reported a turnover of £19.3m, up from £15m, and pre-tax profits of £1.2m, having previously made a pre-tax loss of £4,649.
A spokesperson for Harvey Jones Limited said: “We recently commenced a review of our strategic options which would enable us to restructure the business on a sustainable basis.
“We are now in advanced and encouraging conversations with our key stakeholders and potential new investors, and we hope to have more news to share in the coming days.
“In the meantime, we have filed court documents that will protect the business while these discussions remain ongoing, to allow us time to reach a successful conclusion.
“For our customers, it’s very much business as usual as we continue to fulfil orders and build on the back of a strong January trading month.”
Interpath Advisory declined to comment.
The news about Harvey Jones comes after the joint administrators of The Body Shop revealed plans to restructure the high street retailer which will see a raft of stores close and hundreds of jobs lost.
FRP, which was appointed to oversee the process last week, said by the time the restructure has been completed nearly half of its 198 UK stores will close
Alex Jay, partner and head of the insolvency and asset recovery team at law firm Stewarts, said: “High profile retail insolvencies are coming thick and fast now.
“Those with a large physical store presence – such as Wilko, Body Shop and now Harvey Jones – seem particularly vulnerable
“This will no doubt make landlords nervous around the country as their town centre tenant base is reduced.”