Dunelm executive deputy chairman Will Adderley is sell around five million shares in the business.

Former chief executive Adderley, along with his wife Nadine, intends to sell the shares with the aim of “achieving a greater portfolio of diversification”.

The shares represents around 2.5% of the issued share capital of the value homewares retailer.

Assuming the shares are sold, Adderley would continue to have an interest in 65.5m shares in the company, representing 32.4% of the issued share capital.

The retailer insisted Adderley is “fully committed” to it and has agreed not to dispose of further shares in the next six months.

The Adderley family as a whole would retain a combined interest in 113.6m shares in the company, representing 56.2% of the issued share capital.

The retailer said: “Will Adderley remains fully committed to Dunelm in his role as executive deputy chairman as well as a very substantial shareholder in the company.”

Adderley stepped back from day-to-day involvement in the business when Nick Wharton was brought in from Halfords to take over as chief executive last February.

Veteran retail analyst Nick Bubb said: “Given the recent strength of the share price and the outlook for the UK economy, cynics will think that the real reason is rather different, but, to be fair, the Dunelm business model, of selling cheap cushions and curtains to the mass market, is highly profitable and given the store roll-out potential there should be plenty of takers for the placing.”

Dunelm’s like-for-likes were up 1.1% in the 26 weeks to December 31, as pre-tax profit jumped 7.7% to £52.2m.Turnover grew 8.8% to £299.9m.