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Private equity firm pays Dreams' creditors 3 June 2013

Private equity group Sun European Partners LLP has paid 75p in the £1 to trade creditors of embattled bed retailer Dreams, following the pre-pack administration.

The payoff – worth £23 million – was reported over the weekend in the Daily Telegraph – and will go some way to ease the frustrations of the company’s suppliers.

It is understood that £65 million of debt remains unpaid, with £24 million of rental payments included in that figure.

Ernst & Young confirmed in March that the retailer had been sold to Sun Capital Partners in a pre-pack administration.

While the purchase saved around 1,650 jobs, 95 stores were not included in the transaction with around 400 jobs axed as a result and many landlords losing out.

Alan Hudson, Craig Lewis and Joe O’Connor of Ernst & Young were the joint administrators who handled the case.

At the time, Dreams was the UK’s largest specialist retailer of beds and associated products with 266 stores across the UK, employing approximately 2,000 employees.

Prior to the acquisition through the pre-pack deal, Dreams and its parent company had been late filing its 2011 accounts so the latest information previously available to suppliers, landlords and credit insurers was the trading figures as at December 2010.

 

 

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