According to Daniel Rubin CEO and founder of the Dune Group, before the pandemic the high street chain was “trading robustly”- however continuous stop-start lockdowns had a “severe financial impact” on the retailer.
The company which originally started as a concession stand in London’s Oxford Street in 1992 currently employs 1,200 people, their job roles are not thought to be affected as a result of the proposed CVA.
Dune has said it expects future trading to be “adversely affected” by ongoing restrictions, so it is undertaking a financial and operational restructuring programme which is “supported by its existing financial stakeholders with amended banking facilities”.
If approved, the CVA will see no immediate closures across the store estate but will see a number of sites move to a turnover-based rent.
The group has hired KPMG to lead the process with the firm stating it “will shortly notify all creditors of the company regarding the proposal”.
Rubin said: “After 28 years of successfully growing the business, this is not an action that we wished to take. However, although we have seen exceptional growth in our online business, it hasn’t been sufficient to offset the loss of sales from our stores being closed.
“We remain firmly committed to the high street, and indeed, in the longer term, our strategy is to grow our high street presence and adapt our business model with our concessions partners.”