Harveys and Benson for Beds enter into Administration.
Harveys goes into administration with 240 jobs lost and branches under threat.
Bensons for Beds, which is owned by Harveys' owners Blue Group, will see around 50 of its outlets close, leaving between 150 and 175 open.
Blue Group formally appointed PricewaterhouseCoopers as administrator on Tuesday.
The move leaves the future of Harveys hanging in the balance, with PwC looking for buyers for the business and its three manufacturing plants. Harveys is not currently taking any new orders but will honour existing ones, according to its website
Harvey’s have had financial trouble for the past 12 months and have been seeking a new buyer. Most stores were due to re-open today, with staff spending the past two days cleaning showrooms.
The two furniture retailers operate from 269 stores across the UK and employs 2700 in total, 700 of which are directly employed at Harvey’s.
Both Bensons for Beds and Harvey’s also had a change of hands last November, when former parent company Blue Group was sold off by Steinhoff to Alteri Investors for an undisclosed sum.
Alteri Investors, which owns Blue Group, has decided to restructure the business so that Bensons will become a standalone business. Bensons is the second largest bed retailer in the UK behind Dreams in terms of market share.