LionRock in £100m deal for stake in retailer Clarks, if a CVA is approved

Private equity group LionRock Capital has agreed a £100 million deal for a majority stake in shoe chain Clarks, but the purchase is subject to a CVA restructure getting the green light.

C&J Clark Limited, the 195-year footwear brand, said the Clark family will remain invested in the business and the partnership will help the retailer to expand, including in Asia.

The investment, is subject to shareholder approval and on a Company Voluntary Arrangement for the UK and Ireland businesses. The restructure proposal would see 60 out of Clarks’ 320 shops in those divisions move to no rent.

Giorgio Presca, chief executive of Clarks, said: “The challenges to our business brought on by Covid-19 have meant that we need more resources and investment in order to fully deliver this strategy and safeguard the future of our business.”

Philip de Klerk, interim finance chief at Clarks, said: “The investment from LionRock Capital and the restructuring of our retail footprint, combined with the on-going support from our existing lenders and our focus on cash management and cost control, will provide funding for the company’s seasonal working capital needs and its transformation strategy.”