Nightmare averted as Dreams stores rescued from administration

More than 500 jobs at beds business Dreams are at risk with the company on the verge of administration.

MORE than 1,600 jobs at beds giant Dreams have been saved after 171 of its shops were bought out of administration today.

However, the deal between Sun Capital Partners and administrator Ernst & Young (E&Y) leaves a further 400 jobs at risk as a buyer is still being sought for the remaining 95 shops, which will continue to trade for the time being.

The group’s head office at High Wycombe, Buckinghamshire, and two UK factories have also been sold to Sun Capital Partners.

E&Y 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.”

He said that while its recent performance had improved, it had seen a decline in like-for-like sales and squeezed operating margins.