Clarks has confirmed that Victor Herrero, who was appointed as CEO in February this year, has stepped down from the role but is to remain on its board and will be taking on “broader responsibilities” within its parent company LionRock Capital.
Clarks chairman Johnny Chen will assume the role of interim chief executive whilst a permanent replacement is confirmed. The Clarks business has reported significant losses and has also run into employee relations disputes over its ‘fire and rehire’ policy which led to strikes at its Street warehouse.
In a statement, Clarks said: “The Clarks business is on track to meet or exceed its forecast revenue goals, and our debt and cash positions have been considerably improved in the last few months. The loosening of pandemic restrictions in our key markets and the strong management of costs in the past six months have resulted in the delivery of a much-improved financial position in rapid time.
“Clarks confirms that chairman Johnny Chen will now also assume the role of chief executive as an interim measure and allow former chief executive Victor Herrero to take on broader responsibilities within the LionRock/Viva China group of companies. Victor has done an incredible job in a much shorter than anticipated time and gives us a unique ability to accelerate the next stages of our growth plans. Victor Herrero will remain on the Clarks board. A new chief executive will be announced in due course.”
Clarks posted a loss of £180m in its last financial year and had suffered a £600m drop in revenues. The business was taken over by Hong Kong-based private equity firm LionRock Capital, in a £100m rescue deal.
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