British footwear and accessories brand Dune could be the latest fashion company to launch a company voluntary arrangement (CVA) in the face of difficult trading conditions amid the pandemic.
The British footwear retailer has called in advisers from KPMG to help it review strategic options that could lead to the launch of a CVA, Sky News reports.
The company, which has 3 standalone stores and roughly 1,200 employees, is to kick off a fresh round of talks with landlords over the possibility of changing its store estate to a turnover-based rent model.
Dune begins strategic review
The high street retailer’s founder and CEO Daniel Rubin described the current trading conditions as “extremely tough” and said the company is reviewing all options “to ensure we’re in the best position possible to navigate our way through this difficult period,” according to Sky.
Rubin continued: “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.”
A long and growing list of British fashion retailers have launched CVAs in the past year as they look to mitigate the impact of the pandemic, including LK Bennett, Ann Summers, Moss Bros, Clarks, New Look, AllSaints, Bair Group and Monsoon Accessorize.
Photo credit: Dune