8-K

                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C.  20549


                                   FORM 8-K


                                CURRENT REPORT


                    Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934



Date of Report (Date of earliest event reported)  July 12 , 2001
                                                  --------------


                                 DREAMS, INC.
                                 ------------
            (Exact name of registrant as specified in its charter)

            Utah                                                 87-0368170
- --------------------------------------------------------------------------------
(State or other jurisdiction        (Commission File           (IRS Employer
      or incorporation)                  Number)            Identification No.)

        2 South University Drive, Suite 325, Plantation, Florida 33324
        --------------------------------------------------------------
         (Address of principal executive offices, including zip code)


Registrant's telephone number, including area code  (954) 377-0002
                                                    --------------
                                             N/A
    ----------------------------------------------------------------------
         (Former name or former address, if changed since last report)


ITEM 4.   CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT

     On July 12, 2001, the Board of Directors of Dreams, Inc. (the "Company")
approved the engagement of Grant Thornton LLP as independent auditors of the
Company for the fiscal year ended March 31, 2002, to replace the firm of
Margolies, Fink and Wichrowski ("MFW"), who were dismissed as the Company's
auditors, effective July 12, 2001.

     The reports of MFW on the Company's financial statements for the past two
years did not contain an adverse opinion or disclaimer of opinion, and were not
qualified or modified as to uncertainty, audit scope, or accounting principles.

     In connection with the audits of the Company's financial statements for
each of the last two fiscal years ended March 31, and in the subsequent
unaudited interim period through July 12, 2001 (date of dismissal), there were
no disagreements with MFW on any matters of accounting principles or practices,
financial statement disclosure, or auditing scope and procedures which, if not
resolved to the satisfaction of MFW, would have caused MFW to make reference to
the subject matter in their report.  The Company has requested MFW to furnish it
with a letter addressed to the Commission stating whether it agrees with the
above statements.

ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS

     (c)       Exhibits.

               16.1 Letter of MFW pursuant to Item 304(a)(3) of Regulation SB.


                                  SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amended report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                             DREAMS, INC.


                                             By:  /s/ Ross Tannenbaum
                                                  -------------------
                                                  Ross Tannenbaum,
                                                  Its Chief Executive Officer

DATED: July 17, 2001.

EX-16.1

                                 Exhibit 16.1




July 16, 2001


Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549


RE: Dreams, Inc.

We have read the statements that we understand Dreams, Inc. will include under
Item 4 of the Form 8-K report it will file regarding the recent change of
auditors. We agree with such statements made regarding our firm.


Yours truly,



/s/ Margolies, Fink and Wichrowski
- ----------------------------------
Margolies, Fink and Wichrowski
Certified Public Accountants