Dunelm CEO takes 90% pay cut as company seeks coronavirus loan
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Homeware retailer Dunelm has announced its CEO, Nick Wilkinson, has taken a 90% pay cut as it confirmed it is eligible for a coronavirus loan.
Dunelm also announced that the executive management team has also taken a 20% pay reduction with its chairman and non-executive directors waiving 100% of their fees. These reductions will be in effect for the three months from April to June.
The homeware retailer also reported it had received confirmation from the Bank of England that it is eligible to access funding under the Covid Corporate Financing Facility (CCFF).
The group had existing financing facilities of £175m, consisting of a committed RCF of £165m (maturing in March 2023), which the group decided to draw down in full, and a £10m overdraft. As at 11 April 2020, net debt was approximately £40m.
The company also announced it has reopened its online operations with online order levels “significantly higher” than those seen prior to the onset of coronavirus, whilst its stores are closed during the lockdown, following government advice.
Wilkinson said: “We remain focused on doing the right thing for our colleagues, customers and the communities where we operate, and I am pleased that we have safely re-opened our online operations.
“I am immensely grateful for the dedication and commitment of our colleagues and supplier partners who have demonstrated great agility and determination in a dynamic and unprecedented situation.”
He added: “Whilst many uncertainties remain, we have ensured that Dunelm and its many stakeholders will be well-supported through this difficult period and are confident that we will emerge from this crisis as a stronger business ready to return to sustainable and profitable growth.”
