Bed retailer Dreams entered administration earlier this week, but already the company has been saved by an investment firm.
Sun European Partners have agreed to buy 171 of the company’s commercial properties, which will safeguard the jobs of 1,600 workers throughout the UK. However, 400 staff are still at risk of losing their jobs in 95 stores, but they will trade as normal whilst a buyer is found.
Dreams really have been given a lifeline as Sun European Partners are also buying two factories based in Oldbury and Warrington and their head office based in Wycombe.
Speaking of the reasons for Dreams demise, Alan Hudson, from Ernst and Young who are acting as Dreams administrator, said: “High Street retailers have faced unprecedented conditions over recent years and the market for higher value discretionary purchases has been particularly tough.
“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.”
Recent customers of Dreams need not to worry as Sun European Partners will honour all warranties and also honour orders where deposits have been paid.
Dreams was founded in 1985 by Mike Clare when the first store was opened in Uxbridge. By the year 2000 they had 54 stores. The company underwent a rapid expansion and by the end of 2011 they had around 280 bed specialist shops.
Have you bought a bed recently from Dreams? Will it put you off buying from them now that you know they have had problems? Or will the knowledge that an investment firm have bought them put your mind at ease?
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