Clare is willing to release about 20 per cent of the business – which this year celebrates its 20th anniversary – in order to buy another retailer. “We are in the early stages of talks with private equity firms about selling a share and have had some interest already,” he said.
“We have had great success building up Dreams organically and now want to give the business a boost. We will reinvest in another retail business, but not another bed retailer – something in the homewares sector. Our stores are about 9,000 sq ft and there is plenty of space for products other than beds.”
Clare dismissed speculation that Dreams was up for sale in its entirety and maintained he will remain at the helm. “I want to keep control of the company, so will need to retain 75 per cent of Dreams,” he said. “I always say Dreams is my fifth child – I conceived it and named it – and I wouldn’t want to sell my child.”
He also confirmed that he had no intention to float the store group, adding there was no “particular timetable” for the stake sale talks to be concluded.
Earlier this year, Clare revealed that he expects full-year profits to double and top£15 million. First-half profits came in at£8 million, beating last year’s full-year total. Sales rocketed 30 per cent to more than£100 million on the back of double-digit growth and margins running at 50 per cent.
Clare founded Dreams in 1985 with one shop in Uxbridge. It now has a 150-store portfolio.
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