Dunelm boss takes 90 per cent pay cut as retailer seeks coronavirus loan
The chief executive of Dunelm will take a 90 per cent pay cut, the homeware retailer announced this morning as it confirmed it is eligible for a coronavirus loan.
Chief executive Nick Wilkinson will be paid 10 per cent of his salary for at least three months, while chairman Andy Harrison and other non-executive directors have waived 100 per cent of their fees.
Dunelm said it has received confirmation from the Bank of England that it is eligible for funding under the Covid Corporate Financing Facility.
The group had existing financing facilities of £175m, including a revolving credit facility of £165m that has been fully drawn down, and a £10m overdraft. The company has net debt of around £40m.
Dunelm has also reopened its online operations, and said order levels were “significantly higher” than before the coronavirus pandemic, while its stores are closed during the lockdown.
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.”
In a note to investors this morning Peel Hunt analysts said Dunelm could come through the crisis “in a strengthened market position and an accelerating online proposition”.
Peel Hunt said: “Having initially closed all operations to ensure a safe working environment, Dunelm’s re-opened online operations are coping with a higher level of demand than pre-crisis, albeit on longer lead times. Indeed, the flexibility and capability of the new web platform has proved invaluable.”