Bulletin of Industry
A rescue by a Hong Kong-based private equity company has been accepted by shareholders in the footwear chain Clarks.
Under a voluntary deal, LionRock Capital will invest £ 100 million in the 195-year-old retailer (CVA).
The CVA suggests that none of the 320 stores in Clarks will have to close and that no jobs will be lost.
“Shareholder approval will enable Clarks to partner with LionRock Capital, an experienced Asian private equity firm, which will acquire a majority stake in the business for a £100 million investment,” Clarks said.
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“The deal is expected to be completed in the new year, with the Clark family remaining invested in the business.”
The CVA was already accepted last month by the creditors of Clark. The result was opposed, however, by landlord groups.
The CVA ensures that 60 of Clarks’ stores will no longer pay rent at all, while revenue will be dependent on rent at the remaining 260 stores.
This implies that the amount of rent would be dependent on how much each store spends on clients.
Alison McRae: Looking back at the Covid crisis and looking forward to it.
Yeah, it’s been an unprecedented year – a term that none of us anticipated would be used as much as we reached 2020.
It’s also been a year of new words: covid-19, furlough, pivot, lockout, hospitals in Nightingale, social distancing, and bubbles are all in regular expression, the latter with a whole new sense.
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