Harveys agrees deal with Starcom to pay upfront for its media

Harveys, the furniture retailer, is set to appoint Starcom Mediavest and Minerva to its £8 million media and creative accounts.

The retailer is understood to have agreed to pay for media upfront to secure the services of Starcom Mediavest.

Agencies including Carat and Manning Gottlieb OMD pitched against Starcom Mediavest for the media account, which was thrown into confusion after the insurance company Trading Indemnity refused to provide credit insurance for Harveys' media spend. This acts as a guarantee to media owners and agencies that they will get paid for space booked by agencies in the event the client company runs into financial difficulties.

The retailer previously used Soul for creative and Rathbone Media for its media planning and buying.

Harveys is close to signing contracts with the winning agencies after informing the other competing agencies that they had not been successful.

The pitches were conducted through the AAR.

Harveys' decision to hold a pitch coincided with tough market conditions in the furniture retail market. Harveys is owned by the Homestyle Group, which is reviewing its strategy following a decision to move Harveys upmarket.