Dreams abandons £400m sale

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Dreams

The owner of bed and mattress retailer Dreams has scrapped plans for a £400 million sale after negotiations deteriorated.

Sun Capital Partners, Dreams’ owner, reportedly abandoned the potential deal with an unidentified buyer  over an ownership dispute.

It is understood that the buyer wanted to take full ownership of Dreams, but Sun Capital wanted to retain 50 per cent ownership.

According to the Press Association, other sources alleged that the asking price was too high for the deal to continue, amid doubts over decreasing consumer spend.

Silent Night, Steinhoff and Chinese firms MLily and King Koil all expressed an interest in the retailer when it was revealed to be seeking buyers.

Despite facing increased competition from mattress startups like Simba, Eve and Casper, Dreams reported record profits in March, rising 136 per cent to £32 million and driven by a refurbishment at its Oldbury factory.

Sun Capital saved the retailer from administration in 2013 and has seen its 181-store retailer return to healthy growth.

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