Nightmare wait for workers at bed firm
Date published: 07 March 2013
STAFF at Oldham’s Dreams bed store are facing an uncertain future after the company was bought out of administration yesterday.
More than 1,600 jobs at the beds giant have been saved after 171 of its shops were bought out shortly after it went into administration.
However, the deal between Sun Capital Partners and administrator Ernst & Young (E&Y), leaves a further 400 jobs at risk as a buyer is still being sought for the remaining 95 shops, which will continue to trade for the time being.
There is a Dreams store at Elk Mill Central Retail Park, off Broadway, Royton. It is not yet known which of the stores have been bought and which are in danger.
The group’s head office at High Wycombe, Buckinghamshire, and two UK factories have also been sold to Sun Capital Partners.
E&Y administrator Alan Hudson 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.”
He said that while its recent performance had improved, it had seen a decline in like–for–like sales and squeezed operating margins.
The administration had been another blow to the battered high street, which has recently seen the closure of all Comet and Jessops stores and a number of HMV and Blockbuster shops after a spate of high–profile administrations.
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