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Regulatory update from Dunelm

Published: 22 April 2020 - Alex Fordham

The latest update from Dunelm.

Following the government's introduction of nationwide social restrictions, the company has announced that they were temporarily closing all of our retail operations, across stores and online, in order to understand and comply with the new measures.

The company has used external specialists, including NHS professionals, to help us implement many changes across our operations and only when we were satisfied that the operations were safe, and had received approval from Trading Standards, did we start to take orders again on

The stores remain closed, as per government guidance and the majority of our store colleagues have been furloughed under the government's Job Retention Scheme. The Customer Engagement Centre colleagues are working effectively from home, responding to customer emails and calls. In preparation for re-opening, we are currently working on changes to our store operations that will help ensure colleague and customer safety.

During the last three weeks, its colleagues across the UK have offered support in their local communities, helping people in vulnerable situations, care homes and hospices, and sewing laundry wash bags for health care workers in local hospitals. Dunelm are also pleased to support the NHS by working with them to produce medical gowns in our curtain manufacturing centre in Leicester. As previously announced, the Group had existing financing facilities of £175m, consisting of a committed RCF of £165m (maturing in March 2023), which the Group has decided to draw down in full, and a £10m overdraft.  As at 11 April 2020, net debt was approximately £40m.

Nick Wilkinson, CEO, has taken a voluntary 90% pay reduction, and its Chairman and Non-Executive Directors have waived 100% of their fees. These reductions will be in effect for the three months from April to June.

Comment from Nick Wilkinson, Dunelm's Chief Executive Officer: "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.

"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."



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