ROSEBYS, the curtains and linens retailer, is in talks with Potter, the transport and storage group about the possibility of massively extending its storage space at Selby - leading to another 80 jobs over the course of the next year.

Rosebys' parent company, Homestyle Group, wants to add 200,000 sq ft to its 120,000 sq ft dedicated to Rosebys at Potter's Selby depot, mostly for its direct mail operation. It also uses a further 20,000 sq ft at Potter's Ripon headquarters depot.

Tony Mannix, distribution director for the Homestyle Group said more room was essential because acquisition and organic growth had been rapid. "Year on year sales have been expanding at eight per cent and over the past few months we have been converting the former Fads/Homestyle stores into the Rosebys format at the rate of four per week.

"We are discussing the way forward with the Potter Group and a 200,000 sq ft shell with mezzanine racking is a distinct possibility.

"We have previously recruited excellent staff in Selby and this could build to 150 during the course of the next year."

Mr Mannix said that the Homestyle Group's evolving import strategy may involve the Potter Group linking directly with overseas suppliers by direct contract on large volume orders, with factory containers travelling by rail for holding in customs warehousing in Selby.

The talks mark another milestone in a hugely successful relationship between the 400-outlet Rosebys and Potters which began six years ago when Rosebys' buying team sourced huge quantities of curtains and linens from abroad, landing 18 container loads at Felixstowe Docks in one fell swoop - well beyond its "in house" capabilities.

Talks with Peter Kempson, general manager at Potter's Selby depot secured a small corner of a hared user warehouse there - a deal clinched largely because of the Potter Group's ability to computerise its handling of stock control and movement requirements.

As Rosebys direct mail flourished so did the relationship with Potter and the amount of space. Eventually the two companies interfaced their information technology systems to accelerate stock-picking, despatch and replenishment operations and the growing number of Selby staff dedicated by Potter to Rosebys operations switched to Rosebys payroll. There are now 60 staff with ten more being recruited.

While the bulk of the order picking is now controlled directly by Rosebys, all the operations are underpinned by Potter Group staff.

Mr Kempson said: "We've had a great working relationship from day one. Our role now is primarily that of a facilities provider with support services and back-up, plus a flexible approach to problem-solving."

Many of the textile group's lines are seasonal - beach towels will be flowing through the warehouses from now until September and will then be replaced by flannelette sheets for winter.

picture- AKING PLANS: Tony Mannix, left, distribution director of Rosebys Curtains and Linens with Peter Kempson, general manager of the Potter Group's Selby depot