Stevenage store safe as Dreams enters administration
- Credit: Archant
A BED specialist entered administration yesterday (Tuesday) but a store in Stevenage has already been sold to another company.
Retailer Dreams – which employs approximately 2,000 people – has had 171 of its 266 stores bought by Sun Capital Partners, a day after Ernst & Young LLP was appointed as administrators.
The sale, for an undisclosed fee, includes the outlet in Stevenage town centre, which will continue trading as normal.
The new owner will honour customer orders where part payment deposits have been made for goods and customer warranties.
Joint administrator Alan Hudson said: “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.”
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The subsequent deal will see more 1,600 jobs transferred to Sun Capital Partners, with administrators seeking buyers for the remaining 95 stores.
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