The footwear retailer has launched a major restructuring deal with the hopes of moving to turnover-based rents.
Dune, which currently operates 42 standalone stores and 175 concessions, has hired Will Wright and Chris Pole for KPMG’s restructuring practice to oversee the CVA. If approved, the CVA will allow a number of sites to move to turnover-based rents.
A number of other British brands have launched CVA’s in recent months, including New Look, LK Bennett and Ann Summers as a result of the ongoing impacts of the Covid-19 pandemic and subsequent UK lockdowns.
Chief Executive Daniel Rubin, commented: “Before Covid-19 hit, the business was trading robustly, but the resulting lockdowns have had, and continue to have, a severe financial impact. The CVA provides us with much-needed flexibility so that we can emerge on the other side of the crisis in the best shape possible.”
Will Wright said: “While there is increasing hope that restrictions will be eased later in the spring, the reality is that a number of high street operators have little option but to take urgent steps to address their fixed cost base now if they are to make it through the next few months. The proposals launched by Dune today are no exception, and if approved, would give the company that vital lifeline to see them through the uncertain weeks and months ahead.”
