Dreams in Rugby will continue to trade, despite the company going in administration.
Administrators were appointed for leading bed retailer Dreams Plc last week, putting 266 stores and 2,000 employees at risk across the UK.
Hoever the administrator subserquently sold the company’s business and assets to a new company controlled by Sun Capital Partners, for an undisclosed sum.
As a result the business has secured new investment and will continue to operate as a going concern outside of insolvency.
The new owner will honour customer orders where part payment deposits have 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.”
“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.
“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.”
The Rugby store, at Junction 1 Retail Park, is one of the stores that will remain open.