On 6th March, it was announced that investment group Sun European Partners had acquired the majority of Dreams’ stores – 171, along with 1600 jobs – in a pre-pack administration deal through administrator Ernst & Young. The deal includes Dreams’ head office in High Wycombe, as well as two UK factories.
The remaining 95 stores – and their 400 employees – will continue trading under Ernst & Young’s stewardship while a buyer is sought.
According to the BBC, Ernst and Young’s Alan Hudson commented: “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.”
The US-based Sun European, a subsidiary of Sun Capital Partners, also owns interests in ScS and Sharps. The company said that it plans to honour customer orders where deposits have been made, as well as warranties.
However, suppliers to the retailer have been left in a difficult position. While Dreams has sought the quick recommencement of deliveries, some suppliers are still owed money, which could take some time to manifest.
Dreams founder Mike Clare, who was not successful in his bid to buy back the chain, has announced an interest in 60 stores, through which he intends to create a new national bed chain, Buzz Beds. – the website is already live, at www.buzzbeds.com.