Sweet Dreams as 1,600 jobs rescued

More than 1,600 jobs at beds giant Dreams have been saved after 171 of its shops were bought out of administration.
By The Newsroom
Published 7th Mar 2013, 00:01 BST

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.

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

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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.”

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

Administrators said Sun Capital Partners, which already owns sofa chain SCS Upholstery, will honour warranties. Orders where part-payment deposits have been made for goods will also be met.

Private equity firm Exponent acquired Dreams from its founder Mike Clare in 2008 for over £200m.