A popular shoe shop with 350 branches that was put up for sale earlier this year has received a major update. Dune, the footwear retailer, appointed accounting firm KPMG in March in an effort to attract new investors to the business. However, recent news reveals that the firm's takeover has since stalled.
Bids from Potential Buyers Fail to Meet Target Valuation
Dune has reportedly received bids from several potential buyers, including Next, Footasylum owner Aurelius Group, and overseas footwear manufacturers. However, these offers did not match the target valuation of the business. Dune's founder, Daniel Rubin, had hoped to find a buyer to take on his controlling stake in the company.
Strong Financial Performance Despite Challenging Retail Climate
Last month, Dune Group reported a 73% rise in EBITDA to £10.9 million in the year to January 28, 2023. This impressive growth was driven by brand elevation and international expansion. However, like many retailers, Dune has faced challenges due to the impact of the pandemic, soaring inflation, high energy costs, and the shift to online shopping. These factors have taken a toll on high street shops across the UK.
Boots and Other Retailers Facing Store Closures
Boots, a major health and beauty chain, recently announced the closure of multiple shops as part of its plans to reduce its total number of stores from 2,200 to 1,900. Last week, three branches permanently closed their doors, and more closures are expected in the coming months. Other retailers, including Cineworld, Clarks, M&S, and Tesco, are also closing a handful of stores before the end of the year.
As consumer habits continue to shift towards online shopping, brick and mortar stores are experiencing a lack of footfall, further impacting their viability in today's competitive digital world.
