News: Dreams stores in Rotherham set to close
Two Dreams stores in Rotherham look set to close after neither of them were acquired in the deal to buy the bed retailer out of administration.
Sun European Partners, the European adviser to private equity firm, Sun Capital Partners, acquired 171 outlets, head offices and two manufacturing facilities one day after the company went into administration, saving more than 1,600 jobs.
95 outlets were not part of the deal and are still hoping for a buyer. These include the Rotherham stores at The Foundry Retail Park at Parkgate and at Cortonwood.
Alan Hudson, joint administrator at Ernst & Young, 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.
"While 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."
Dreams grew from one store in 1985 to 270 this year. Mike Clare sold the business he founded for around £200m in 2008 and it was reported that he put in a bid to buy the brand back out of administration.
Staff at Rotherham town centre branches of travel agents Thomas Cook and Co-op Travel also face a nervous future as the group announced this week that it is proposing to close 119 of the Co-operative stores, as well as 76 Thomas Cook stores, putting 1,000 jobs at risk.
Manuel Cortes, leader of the TSSA travel union expressed shock and anger at the decision. He said: "The company needs new products if it to come to come to terms with the age of the internet and prosper in the 21st century.
"That is the only way to stop this spiral of decline which repeated bad management decisions over the past five years has led them."
Dreams website
Thomas Cook website
Images: dreams.co.uk
Sun European Partners, the European adviser to private equity firm, Sun Capital Partners, acquired 171 outlets, head offices and two manufacturing facilities one day after the company went into administration, saving more than 1,600 jobs.
95 outlets were not part of the deal and are still hoping for a buyer. These include the Rotherham stores at The Foundry Retail Park at Parkgate and at Cortonwood.
Alan Hudson, joint administrator at Ernst & Young, 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.
"While 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."
Dreams grew from one store in 1985 to 270 this year. Mike Clare sold the business he founded for around £200m in 2008 and it was reported that he put in a bid to buy the brand back out of administration.
Staff at Rotherham town centre branches of travel agents Thomas Cook and Co-op Travel also face a nervous future as the group announced this week that it is proposing to close 119 of the Co-operative stores, as well as 76 Thomas Cook stores, putting 1,000 jobs at risk.
Manuel Cortes, leader of the TSSA travel union expressed shock and anger at the decision. He said: "The company needs new products if it to come to come to terms with the age of the internet and prosper in the 21st century.
"That is the only way to stop this spiral of decline which repeated bad management decisions over the past five years has led them."
Dreams website
Thomas Cook website
Images: dreams.co.uk
1 comments:
Looks like the Thomas Cook Group has earmarked the Co-op Travel store in All Saints' Square and the Ilkeston Co-op Travel on Effingham Street for closure.
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