Dreams up for sale for £400m as it seeks potential new owners

Bed retailer Dreams is poised to go on sale £400 million just four years after current owner saved it from financial collapse.

Investment bank Rothschild has been selected by the bedding chain’s owner, private equity firm Sun European Partners, to seek potential buyers after Dream’s profits were wiped clean and profits grew drastically.

According to The Telegraph, a sale, float or potential refinancing of the company is being considered.

Dreams was saved from the brink of collapse in in 2013 when it was bought out of administration by Sun European Partners, saving 1600 jobs.

There has since been a rapid improvement in finances, posting a £13.1 million pre-tax profit in 2015 compared to £400,000 in 2014.

By 2016, the retailer recovered completely from 2013’s dire financial situation after paying off its remaining debt.

Dreams is expected to post sales of up to £285 million in its next trading update, and it now rakes in more than £35 million in underlying earnings thanks to a 40 per cent increase in like-for-like sales.

Before Sun European Partners, Dreams was owned by Exponent, which bought the business for £200 million in 2008.

However, the global recession struck soon after and growing debts eventually caught up with company, which eventually led it to administration.

Dreams has 180 stores around the UK.

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