Sportswear firm’s creditors set to miss out on £5.8m

The creditors of failed Nottingham-based sportswear manufacturer Dreamsport are unlikely to see any of the cash owed to them after it emerged that parts of the company were sold for just over £100,000

According to documents seen by TheBusinessDesk.com, Dreamsports’ Teamwear division was sold to Dreamsport 2022 Limited, part of the The Stevenson Group in a deal worth just £110,000. Administrator Grant Thornton has admitted in a report that none of Dreamsports’ creditors will see the cash owed to them because of the costs of legal fees and its own remuneration.

The news means that Dreamsport went under owing almost £5.8m to creditors.

Some 35 jobs were saved as part of the deal to sell the Teamwear division, but Grant Thornton couldn’t find a buyer for the Dreamsports’ Seamless arm, which means five people were made redundant.

Dreamsport called in administrators from Grant Thornton on March 30 after suffering a decline in trading following the outbreak of the Covid-19 pandemic.

Dreamsport designed, developed and manufactured customised sports kit for international, professional and amateur clubs, universities and schools.