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Footwear chain Dune launch a CVA

Written by Robert Moore Marketing Manager 10 February 2021

Footwear chain Dune launch a CVA

10 February 2021

Following restructuring talks with landlords and the appointment of KPMG last week, Dune has launched a CVA to cut rent costs.

The CVA needs to gain approval by creditors. If approved, there will not be any immediate store closures, sites will just move to turnover-based rents.

4 February 2021

Dune Group are in talks with KPMG on discussing rent cuts with landlords.

KPMG have been appointed to help review strategic options for the high street shoe chain. It is thought that these discussions may result in a company voluntary arrangement. All will depend on the talks with landlords and their favourability of a turnover-based rent model.

Founded in 1992 by Daniel Rubin, Dune now has 43 standalone stores and a workforce of around 1,200 staff members. It also trades from approximately 175 concessions.

All of the chains stores have been closed for the majority of the last 12 months due to the coronavirus pandemic and the impact of the lockdown.

CEO of Dune, Daniel Rubin says: "The trading environment continues to be extremely tough, and like many other high street retailers, we are reviewing all aspects of our business to ensure we're in the best position possible to navigate our way through this difficult period. We've had constructive dialogue with our landlords since the start of the pandemic, but we now need to engage with them further if we are to safeguard our future. To this end, we have appointed KPMG to review options specifically in relation to our property portfolio, and to assist us with our negotiations with stakeholders as we seek to manage our business through the months ahead."

Categories: Retail, What is a CVA or Company voluntary arrangement?

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