Licensed sports products retailer Dreams (AMEX:DRJ) said Monday it has been approved to expand its credit facility with Regions Bank, to $25 million effective immediately, and up to $27.5 million on October 1.
This represents a $7.5 million increase since Dreams named Regions Bank as its new senior lender in July last year, the company said.
“Regions’ banking group has been a great partner for us,” said president and CEO Ross Tannenbaum.
“They have been very supportive of our corporate initiatives, and have now demonstrated this support with a substantial increase to our working capitalline.
"The additional funding will permit our business models to remain aggressive, which includes our goal of generating more than $140 million in consolidated revenues in 2011.”
Indeed, the Florida-based company has been expanding rapidly, specifically through its e-commerce division, which includes FansEdge.com and other websites - an increasing focus for the firm. The division manages over 65 online fan shops, selling licensed sports merchandise from the NFL, NHL, NBA, MLB, and NCAA.
During the fourth quarter, the company's internet division revenues were up 45.7% year-over-year to $51.0 million. Dreams has also been climbing the ranks of several industry magazines' top online retailers, building on its success.
The company's recent growth is also reflective of its web syndication platform, a market which it entered in late 2008 by rolling out "Dreams Retail Solution", a host of e-commerce support services including custom site design, inventory, management and marketing. Clients of the new platform currently include Walmart, JC Penney and Sears, as well as NBC Sports and AOL Sports, and the list is set to expand even further.