Mike Clare, founder of the bed manufacturer and retailer Dreams, has sold the majority of the business he founded over 20 years ago to a private equity firm and senior management.
Clare will retain a stake in the £200m plus turnover business, which has over 170 stores across the UK, and will take on the non-executive role of president allowing others to handle the day-to-day running of the business.
“Dreams is a huge success story with so much still to do, which is why I was so keen to stay involved with the business,” he said.
Clare, formerly a branch manager at Hardy’s the furniture company, set up the Sofa-Bed Centre in 1985, which he re-branded as Dreams in 1987.
Throughout the 1990s the company became increasingly successful and was awarded the title of Furniture Retailer of the Year in 1996.
Clare has since been increasingly recognised as one of the UK’s leading entrepreneurs, winning various accolades in his own right. The Sunday Times Rich List declared his personal wealth to be £120m.
Speaking after the deal he said he expected the business he built up to continue to expand under the new agreement.
“I am very confident in the team we have in place to run Dreams and take us to the next level,” he said.
The deal, the exact value of which has not been disclosed, is being backed by the private equity business Exponent as well as investment from senior management. It also means that Nick Worthington will become the company’s chief executive.
“We have very attractive growth opportunities in the UK and expansion into both mainland Europe and the Middle East are likely to feature in our plans as we aim to replicate our domestic success internationally,” said Worthington.
Interestingly, the company has also appointed a new chairman, former DSGi, chief executive John Clare, however he is not related to the Dreams founder.
© Crimson Business Ltd. 2008
