Shoe Zone planning to cancel final dividend payment

Shoe Zone is expected to cancel the final payment of its dividend for 2019 to help give the business more financial security ahead of the "significant disruption" that will be caused by the coronavirus outbreak.

The company, which owns 500 stores and employs around 3,500 people across the UK and Ireland, has been battling challenging trading conditions on the UK high street, having warned of closing around 100 stores last month.

Shoe Zone's board unanimously backed the decision to defer the payment of the 2019 final dividend that was approved at the company's Annual General Meeting held on 5 March.

The business added that on 28 April, the board will announce the intention to convene a General Meeting where a resolution will be proposed to cancel the 2019 Final Dividend.

A statement from Shoe Zone said: "In recent days we have seen a reduction in footfall, across our estate, and whilst the full extent of the coronavirus on the short and medium term retail environment is not yet clear, it is becoming ever more apparent that it will create significant disruption to people's lives and shopping habits in the coming months.

"The decision to defer and take steps to propose the cancellation of the 2019 final dividend has been taken with the unanimous backing of the board and ensure the robustness of the business to protect it from a sustained period of challenging trading."