Clarks’ shareholders have approved a £100m rescue deal from Hong Kong-based private equity firm LionRock Capital.

Once the deal is complete, LionRock will acquire a majority stake in Clarks.

The investment was subject to the approval of a proposed company voluntary arrangement for its UK and Irish store portfolio, announced on 4 November. The proposal was signed off by Clarks’ creditors last month.

The CVA will convert 60 of the footwear retailer’s 320 UK and Irish stores to zero rent, and move to a turnover-based rent model that aligns to “future performance and reflects the wider retail market”.

None of Clarks’ 320 stores will permanently close, and no jobs will be lost.

The LionRock deal is expected to complete in the new year. The Clark family will remain invested in the business.

Source: Drapers

Can’t stop reading? Read more