Dreams chief operating officer Greg Suthern has left the business after nine years.
The departure on Friday comes amid a rocky few months for the beds specialist as it seeks a financial restructuring of the business.
The company’s owner Exponent and its banks are understood to have disagreed on strategy and are now trying to thrash out a deal that could result in a sale or a refinancing of the business, sources have indicated.
Suthern has worked at Dreams since 2003 after a 10-year career at sofa giant DFS. He was seen as chief executive Nick Worthington’s right-hand man and has been credited with growing Dreams into a national brand.
Sources told Retail Week Suthern left by mutual agreement. It is not known if he has left with a job to go to.
The 270-store retailer has aggressively expanded in recent years but trading slowed amid the downturn, with EBITDA slumping 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, and it is understood trading is ahead of budget currently with like-for-likes up in its current financial year.
Dreams declined to comment on Suthern’s departure.