UK furniture store Homestyle suffers heavy losses

Furniture retailer Homestyle today counted the cost of overcoming its debt mountain as it reported pre-tax losses of almost £25m (€37m).

Homestyle said it made pre-tax losses of £24.6m (€36.4m) in the 61 weeks to July 1 after financial difficulties forced it into a major restructuring deal.

The Rotherham-based company – which runs the Harveys, Benson, and Sleepmaster chains – today insisted it faced the future with “fresh enthusiasm” but shares sank 3%.

The losses in the 61 week period compared with losses of £25.5m (€37.8m) in the 52-weeks to the end of April 2005. Homestyle changed its accounting year following the restructuring in June 2005.

The company has 170 Harveys furniture stores across the UK and a further 392 bed shops spread across the Bensons, Sleepmaster and Bed Shed chains.

It reported a 15.5% like-for-like growth in orders taken at its Harveys furniture stores during the 52 weeks to July 1, although it did not offer details on sales at its beds division.