Dreams furniture store in Grantham under threat
The future of the Dreams bedroom furniture store on London Road, Grantham, is under threat after the company went into administration.
Another company has bought 171 of the Dreams stores, but this does not include the Grantham store which adminstrators Ernst & Young LLP are still trying to sell.
Dreams is the UK’s leading specialist retailer of beds and associated products with 266 stores across the UK, employing approximately 2,000 employees. The Joint Administrators upon appointment subsequently sold the Company’s business and assets to a new company controlled by Sun Capital Partners, for an undisclosed sum. As a result the business has secured new investment and will continue to operate as a going concern outside of insolvency. The new owner will honour customer orders where part payment deposits have been made for goods and customer warranties.
Alan Hudson, Joint 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. 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 remaining stores that are not included in the sale will remain open for business whilst the administrators seek to find buyers for these stores.”
A spokesman said that the Grantham store employed two people.
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Saturday 25 May 2013
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