Buy-out saves Dreams shop from administration
- Credit: Archant
THE future of a Weston shop whose parent company went into administration appears to have been secured.
Bed chain Dreams, which has a store in Marchfield Way, went into administration yesterday (Tuesday) – but has now been snapped up by a new owner.
Administrators sold the firm’s business and assets to a new company controlled by Sun Capital Partners for an undisclosed sum.
This means the business has secured new investment, and will continue to operate as a going concern, with orders lodged prior to the change honoured by the new owners.
The news will come as a relief to workers at the Weston store, who admit they were ‘in the dark’ about what the future held prior to the buy-out.
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Administrator Alan Hudson 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.
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“Whilst 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.
“However, we are pleased to announce that a sale has been completed that sees the majority of the Dreams business including 171 of its stores, its head office and its two UK manufacturing facilities being sold to a new company controlled by Sun Capital Partners.
“The business will continue to trade without interruption, over 1,600 jobs have been transferred and the future of Dreams on the UK high street has been safeguarded.”
The news will come as a boost to Weston, which has lost a number of major retail names in recent months, including Clark’s, Gilesports and Jessops, with Thornton’s and Topshop set to follow suit.