National bed retailer Dreams may have only just entered administration, but the Newport branch here on the Island is safe from closure after being acquired by Sun Capital Partners.
The Newport store is one of 171 stores nationally which have been purchased by Sun Capital Partners from Ernst and Young, meaning it is business as usual for staff and customers a like.
In a statement today, Joint 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. 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 business including 171 of its stores, its head office and its two UK manufacturing facilities being sold to a new company controlled by Sun Capital Partners. The business will continue to trade without interruption, over 1,600 jobs have been transferred and the future of Dreams on the UK high street has been safeguarded.”