Grimsby's Dreams store faces uncertain future
GRIMSBY'S Dreams store is not among those to have been bought out by Sun Capital Partners after the chain went into administration late last night.
Joint Administrators Alan Hudson, Craig Lewis and Joe O'Connor of Ernst & Young LLP said the Victoria Street branch of the national bed retailer was one of 95 stores which had not been included in the last minute deal.
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Grimsby's Dreams store is facing an uncertain future.
However, the new owner will honour customer orders, where part payment deposits have been made for goods, and customer warranties.
Mr Hudson said: "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.
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"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."
Founder and former chief executive
of furniture retailer Dreams, Mike Clare, has also expressed his disappointment and
sadness at the news that the company is to cease trading.
Mr Clare has been involved in
marshalling a rescue plan for the retailer since autumn 2012, which would have
seen its founder buying back the company. However the repurchase of Dreams by
Clare was unsuccessful.
Following the news, he has
announced that he is now developing a new bed retailing venture with the
intention of it filling the vacuum the demise of Dreams will leave in the high
street.
He said:
"I already have plans in an advanced stage to rescue as many of the stores in
the Dreams portfolio, and with it as many of the jobs within the company's
skilled workforce, as possible."
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