Private equity firm Sun European Partners has paid £23m to Dreams’ creditors after buying the bed retailer via a pre-pack administration from peer Exponent Private Equity in March.
Sun European has paid out 75 pence in the £1 to trade creditors totalling £23m and repaid £11m of customers’ deposits, said the Telegraph.
Dreams still has £65m of outstanding debts including £24m in future rental payments and £28m owed to banks and the former owner and £8m to HM Revenue and Customs, said the report.
A Dreams spokesman said, “Through the pre-pack administration we were able to safeguard the majority of jobs and stores in our organisation.”
“Our customers and suppliers are of paramount importance. Sun European Partners recognise this and we have been working with them to protect as many of our stakeholders as possible.”
Exponent bought Dreams for £230m at the height of the buyout boom, and subsequently struggled with the business amid a slowdown in consumer spending.
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