The former management of Beds Direct, which hit the buffers last week, are to focus on generating sales from a smaller number of stores at its newly formed retail business Heli-Beds.

The new company – which trades from a web site and the 20 stores in the Southwest that were saved after the administration of Beds Direct – said that overly ambitious expansion plans for Beds Direct combined with tough trading conditions led to its demise.

Managing director Ivan Marr, who along with company secretary Geraldine Hives bought Beds Direct in a pre-pack deal, told Retail Week that Heli-Beds is well placed to weather the economic downturn.

“Several Beds Direct stores were cannibalising others, so we wanted to consolidate,” said Marr. “Closing stores helps distribution and makes trading more manageable. We want to be a big fish in a small pond.”

The retailer will launch a regional campaign at the end of this month.

The administrator to Beds Direct, PricewaterhouseCoopers, closed 22 stores and made nine shopfloor redundancies after its collapse. “We kept as many employees as we could,” said Marr. “All our distribution staff were saved.”

The distribution staff are crucial to Heli-Bed’s aim of providing same-day delivery, he explained. “This, our unique selling point, will now come to the fore.”

Heli-Beds will trade through the web site, which had a “marked impact” on Beds Direct’s business, according to Marr.

“Our banks are being very co-operative and supportive. We don’t subscribe to the feeling of doom and gloom on the high street. We’re feeling very positive,” he said.

All Beds Direct orders will be honoured by the new business.

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