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One of York's Dreams bed shops is saved in rescue deal
ADMINISTRATORS have sold bed retailer Dreams's Clifton Moor store as part of a deal to save the business.
The future of a second store at Foss Islands retail park, York, hangs in the balance as it was not counted among the 171 stores sold to Sun Capital Partners, which also bought the company's head office and two UK manufacturing sites.
Administrators from Ernst & Young said they would continue to trade the remaining 95 stores, which also include shops in Harrogate and Wetherby, while it looked for a buyer for the remaining shops.
Dreams employs about 2,000 employees, including four people at Clifton Moor, three at Foss Islands, four in Wetherby and three in Harrogate.
The administrators said the sale to Sun Capital Partners, which includes the transfer of 1,600 jobs, would mean new investment in the business and said the new owner would honour customer orders where part-payment deposits had 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."