£400m price tag for Dreams

A BED retailer saved from the brink of collapse is set to go on sale for £400m.

Dreams was bought out of administration in 2013 by turnaround business Sun European Partners. The deal rescued 1,600 jobs and there has since been a steady improvement in fortunes at the firm.

It posted a £13.1m pre-tax profit last year, up from £400,000 in 2014, thanks to a programme which saw loss-making stores shuttered and a revamp of profitable ones.

Dreams has 180 stores and sources told the Sunday Times it could change hands for £400m.

Before Sun, the company had been owned by private equity company Exponent, which bought the business for £200m in 2008, shortly before the financial crisis. Heavy debts eventually caught up with it during the downturn and it slid into administration.

Sun’s sale is expected to go through later this year. There is no list of possible buyers yet.