MANSFIELD’S branch of Dreams has been saved from closure after the store and 170 others in the UK were bought by Sun Capital Partners.
The store, which is based at Portland Retail Park, will remain open as part of a pre-pack administration with the owners of the rival bed and sofa company, SCS.
It is a boost for the town after fellow High Street retailers HMV, Jessops and Republic all went into administration recently, although Blockbuster in Mansfield is set to remain open.
Dreams is the UK’s leading specialist retailer of beds and associated products with 266 stores across the UK, employing approximately 2,000 employees.
The Dreams business was sold to SCS for an undisclosed sum and as a result the company has secured new investment.
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 will remain open for business whilst the administrators seek to find buyers for these stores.”