Bed retailer Dreams in administration – but Crawley branch saved
Bed retailer Dreams has gone into administration – but the Crawley branch has been saved.
The UK’s leading specialist retailer of beds, which has 266 stores employing some 2,000 staff, went into administration on Tuesday (March 5).
Administrators Ernst and Young LLP said it had sold 171 of the stores - including the one in Gatwick Road, Crawley - to a new company controlled by Sun Capital Partners.
This has saved more than 1,600 jobs.
A spokesman said the new owner would honour customer orders where part payment deposits had 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.
“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.”
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Saturday 18 May 2013
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