More than 270 West Midland jobs have been saved in a rescue deal following the nationwide collapse of furniture retailer Dreams.
Around 200 jobs at the chain’s main manufacturing facility in Oldbury and over 70 at 17 stores across the region form part of the takeover of the cash-stricken group by Sun Capital Partners.
Sites in Kings Heath, Sheldon, Brierley Hill, Erdington, Leamington Spa, Oldbury, Perry Barr, Redditch, Tamworth, Wolverhampton and Wednesbury are all part of the rescue agreement.
But staff at outlets in Harborne, Kidderminster, Cannock and Walsall face an uncertain future whilst buyers are sought for their sites.
Dreams is the UK’s leading specialist retailer of beds and associated products with 266 stores across the UK, employing approximately 2,000 employees, but has now become the latest victim of the High Street spending squeeze.
Joint administrators Ernst and Young said the new owners would 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.”
No stores have been closed as a result of the collapse.