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
Blackstone taps bond market as private credit BDCs end issuance drought
Blackstone taps bond market as private credit BDCs end issuance drought Blackstone's private...
EQT raises the stakes with revised $12.3bn bid for Intertek
EQT raises the stakes with revised $12.3bn bid for Intertek EQT has tabled an improved takeover...
Temasek’s Azalea bets on evergreen structure to democratise private equity access
Temasek's Azalea bets on evergreen structure to democratise private equity access Azalea, a unit...