Thu, 07 Mar 2013 | ADMINISTRATION
Bed retailer Dreams has been put into a pre-pack administration through a deal with a new company controlled by Sun Capital Partners.
The collapse of the company resulted in the closure of 90 stores with 400 jobs lost. However, the remaining 171 shops and nearly 1,700 jobs have been saved.
Alan Hudson, a joint administrator for Ernst & Young, noted that Dreams had been hit by a general downturn on the British high street, where retailers have faced “unprecedented conditions over recent years”. Big ticket items, such as beds and sofas, have been particularly hard hit as people have learnt to make do with what they have while their income remains depressed.
Mr Hudson added: "Dreams is a well known market leader, but in common with many others has suffered as a result of this depressed retail environment, a rapid expansion of its store portfolio and onerous lease liabilities. While recent performance has improved, it has seen a decline in like for like sales across its store portfolio as well as its operating margins being squeezed. This has resulted in the business being unable to continue to operate outside of administration.”
The news comes shortly after Dreams' founder Mike Clare put in a bid to buy back the business, but it is thought that he was rejected by the company's banks, RBS and Barclays.
____________________________________________________________________________
Related articles:
Founder aims to buy back Dreams bed retailer
Government clarifies rules on pre-pack administrations
Online business with a fabulous reputation and loyal customer base, it's a great opportunity for any buyer looking for an existing, successful business to walk into. This growing business offers flexibility to a new owner due to its entirely online o...
Established in 1989, the business has built an enviable reputation and for its reliable and friendly service. Now for sale on a freehold basis. Placed in an area with high levels of passing trade and surrounded by excellent transport links, this busi...
A construction business located in Carrickfergus is now for sale. It has been growing since 1986, and the current owner is ready to sell to a suitable buyer. It is ideally situated and is being sold as freehold.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.