Bed retailer Dreams 'set to meet banks on funds'

Updated: 
MoneyStruggling bed retailer Dreams will reportedly meet with banks 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, Royal Bank of Scotland, has instructed accountancy firm Grant Thornton and Pragma Consulting to look at the company's business plan, the Independent on Sunday said.

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

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.

The firm, which is headquartered in High Wycombe, Buckinghamshire, and employs nearly 2,000 staff, can be traced back to Mr Clare's first venture in 1986.

Father-of-four Mr Clare worked for several furniture firms before setting up a sofa bed shop in Uxbridge, Middlesex, in 1986.

He had to remortgage his home with his wife to start the business. A year later they opened the first Dreams store after adding beds to the range.

In 2006 Dreams opened an 84,000 sq ft bed factory in Oldbury in the West Midlands.

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