50 workers made redundant at Dreams in Oldbury

It was first feared 70 positions would be scrapped but bosses said they had been able to offer some workers other roles and move some to its other site in Wednesbury.

Of the 53 redundancies made by the firm at its base on the Granada Trading Estate, just 14 were voluntary, said the firm.

It said it had been a 'tough decision' to reduce staff numbers but it was essential for 'the long-term viability' of the Oldbury site.

Bosses said they were working to make the factory, which produces beds, more efficient after investing in new technology which required fewer workers.

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

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."

Some of the staff have been redeployed to the firm's central distribution centre in Hallens Drive, Wednesbury.

The 84,000 sq ft factory opened in Oldbury in 2006 with a 210-strong workforce.

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 in Wednesbury, which is also a superstore.

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

In March, Dreams reported earnings before tax of £6.9m 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.

It is the latest jobs blow in Sandwell, following the loss of around 60 jobs at used car supermarket chain Carcraft in Wednesbury.

The workers were made redundant immediately after the firm went into administration at the end of April.