Gwent jobs safe at Dreams stores in Newport, Cwmbran and Caerphilly
2:47pm Wednesday 6th March 2013 in News
GWENT employees of bed retailer Dreams have had their jobs saved after the company being bought by a private equity group after administrators were called in.
Stores in Newport, Cwmbran and Caerphilly have all been sold to Sun Capital Partners with 12 jobs being saved, four from each store.
Dreams is the UK’s leading specialist retailer of beds and associated products with 266 stores across the UK employing around 2,000 people.
Sun Capital Partners bought the company’s business and assets – including 171 stores – for an undisclosed sum, but 400 jobs remain at risk across the UK.
The deal means 1,600 jobs have been saved including the positions in the Gwent retail stores.
Alan Hudson, Craig Lewis and Joe O’Connor of Ernst & Young were appointed Joint Administrators of Dreams on Tuesday, March 5.
The Joint Administrators sold the company’s business and assets to a new company controlled by Sun Capital Partners.
Joint Administrator Alan Hudson said high street retailers have been battling with "unprecedented conditions" over recent years.
He 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.
"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."