disclosed that its parent company, Purvis Ltd., is selling part of the firm to Furniture Flair.

It is the second time this year that loss-making Purvis -- once one of Bermuda's largest group of companies -- has disposed of part of its business.

Only last month it clinched a deal to sell its core business, Purvis Distributors, to BGA.

But Purvis chairman Sir John Sharpe again denied yesterday that Purvis was gradually being wound down, although he gave a hint that the rest of Office Equipment may also be sold.

"As I have said before, the current economic climate encourages a merging of resources,'' he added. "Furniture Flair's buying out of our furniture and design division represents just that.

"The balance of Office Equipment could potentially in the future in one way or the other follow the pattern of a merging of resources.

"What our present efforts are concentrated on is getting sales up, keeping expenses down and returning Office Equipment to profitability, something which we appear to be on target with.'' Although all recent Purvis activity has involved Purvis selling off its assets, leading to a reduction in its workforce from 130 to under 70, Sir John did not rule out possible acquisitions by the company.

"We've got to make decisions in the best interests of shareholders and staff in the foreseeable future,'' he said.

"If those best interests are served by someone taking over our business or by us taking over someone else's business, so be it.'' The company which bought Office Equipment's furniture and design division is owned by Mr. Alan Gamble, the son of one of Purvis' main shareholders, Mr.

Frank Gamble, who managed Office Equipment for about 25 years until the mid-1980s.

Mr. Alan Gamble said his father would be employed in an advisory/ consultancy capacity by Furniture Flair.

"He has a very good reputation in the business community in Bermuda as well as a tremendous amount of experience in the office furnishing business,'' said Mr. Gamble.

Furniture Flair, which currently operates from Marsh Lane, Devonshire, will move to Office Equipment's site at Victoria Street, Hamilton, on June 1, and will employ about five of Office Equipment's staff.

There are unlikely to be any redundancies as a result of the deal, but Mr.

Gamble said he could give no absolute guarantees to workers.

The acquisition from Purvis will allow Furniture Flair to broaden its area of work from residential furniture, hotel furnishings and commercial carpeting into office lines.

"The acquisition will integrate well with what we've got,''said Mr. Gamble.

"Office Equipment is a very good company with some good lines and some excellent people.

"In the last four years Office Equipment has taken a bit of a beating and has suffered from mismanagement. That's been rectified now and the place has been cleared out.

"We look forward to getting back the kind of reputation, at least on the contract side, that Office Equipment used to enjoy.'' Furniture Flair has appointed Mr. David Pantry as general manager and Mrs. Ann Simons has become manager of its office furnishings contract division.