May 22 2013 Latest news:
Alistair Kleebauer, Senior reporter
Wednesday, March 6, 2013
The Dreams bed store in Ilford has been bought a day after the company went into administration.
Investment group Sun European Partners has bought 171 Dreams stores across the UK, saving more than 1,600 jobs.
It includes the store in High Road, Ilford, which has three staff members.
Ernst & Young were appointed administrators of Dreams yesterday with the company struggling in a “depressed retail environment”.
The administrators will now seek buyers for the remaining 95 UK stores, which will continue to trade.
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 stores being sold to a new company controlled by Sun Capital Partners.
“The future of Dreams on the UK high street has been safeguarded.”