Bed retailer dreams has entered a pre-pack administration, with 90 stores earmarked for closure and 400 jobs culled.
However, 171 shops and almost 1,700 jobs will be saved as part of the £35m administration deal with the owners of rival bed company ScS.

Administrators Ernst & Young have been recruited to oversee the sale of Dreams to retail turnaround specialists Sun European Partners. The firm surpassed rival bids by original Dreams founder Mike Clare, and, reportedly, bed manufacturer Silentnight.

Mr Clare sold the business in 2008 to Exponent in a £200m deal. Reportedly, Exponent could not be persuaded to invest in the business when it fell victim to the ongoing downturn of the high street, and consumers' reluctance to spend on big-ticket homewares earlier this year, and as a result it was put on the market.

Despite its recent troubles, Dreams is still labelled as a market leader, with sales up 7.2% year-on-year in the four weeks to January 7, with total sales up by 8%.