Dreams bed firm to axe 70 jobs at Black Country factory

The firm is consulting workers on the plans to reduce the 210-strong workforce at the base on the Granada Trading Estate in Oldbury.

Bosses said they were working to make the factory, which produces beds, more efficient after investing in new technology which required fewer workers. Around 70 workers are expected to be affected, the firm said. It said it had been a 'touch decision' to look at reducing staff numbers.

They said the retail side of the business was continuing to invest in the new stores including one which opened in Solihull last weekend.

A spokesman for Dreams said: "This has been a very tough decision for us, especially as we are such a tightly knit firm, but it is necessary to ensure the long term viability of our Oldbury site.

"We remain committed to supporting manufacturing in the West Midlands and we expect to open further retail premises in the region over the next year."

A worker, who did not wish to be named, claimed the firm was reducing the number of shifts from three to one.

"There is apprehension and uncertainty everywhere. It's not just the workforce, it's management too.

"It is still at consultation stage, we will know more next week," they added.

The 84,000 sq ft factory opened on the site off 2006.

Dreams, which has recently launched a new TV campaign, has stores in Brierley Hill, Oldbury, Wednesbury and Wolverhampton.

Around 50 people work at the firm's distribution centre at Hallens Drive, Wednesbury, which is also a superstore.

Its owner Sun European invested £6m last year into areas of the business including IT, new vehicles and store refurbishments.

In March, Dreams reported earnings before tax of £6.9 million for the 12 months to December 24 2014 following a £3.6m loss in the previous year.

Turnover was up 0.8 per cent to £201.6m driven by a strong second half of the year.

At the time the firm said it would be making a similar level of investment this year, predominantly on refurbishing the remaining stores and opening 10 to 15 new shops.

Founded in 1985, and owned by Sun European Partners since March 2013, Dreams has more than 160 retail stores across the country.