The owner of Dreams is attempting to take control of the bed specialist from its lenders as part of a planned restructure involving more investment and, potentially, store closures.
Exponent Private Equity yesterday told Dreams’ main lender Royal Bank of Scotland that it is willing to inject tens of millions of pounds into the debt-laden business, according to Sky News.
Sources have indicated that chairman Steve Johnson, drafted in by Exponent, and Alan Fort, a retail restructuring expert hired by the banks, have struggled to reach an agreement on the nature of any restructuring.
Exponent bought Dreams from founder Mike Clare in 2008 in a deal worth more than £200m.
The 270-store retailer has aggressively expanded in recent years but trading slowed as the downturn bit, with EBITDA falling to £11.2m from £25.1m in the year to December 24, 2010.
However turnover rose 7% to £300m in the period as the retailer took share in a tough big ticket market.
Dreams, Exponent and RBS declined to comment, Sky News reported.
1 Reader's comment