Dreams “set to meet banks on funds”

By JAMIE GRIERSON
Published on 18/06/2012 02:57

Struggling bed retailer Dreams will reportedly meet with banks including Royal Bank of Scotland this week to present its turnaround vision in a bid to secure a crucial refinancing package.

The company, which has 270 stores, is understood to have about £40 million of debt on its balance sheet at a time when big-ticket retailers are facing tough conditions.

Its main lender, RBS, is said to have instructed accountancy firm Grant Thornton and Pragma Consulting to look at the company’s business plan.

Private equity firm Exponent acquired Dreams from its founder Mike Clare, who still owns a 10 per cent stake, in 2008 in a deal worth more than £200m.

Dreams’ banks are understood to be keen for it to have a more appropriate debt structure for the current retail climate, although trading has improved in recent months.