A CVA proposal by Clarks has been approved by over 90 per cent of the company’s creditors.
The approval of the CVA was a requirement of Asian private equity firm, LionRock Capital, which has agreed to invest £100m in the Somerset-based shoe brand, as part of a rescue deal. As a result, LionRock Capital will obtain a majority share of the business.
The LionRock Capital investment is still subject to shareholder approval and the successful completion of a 28-day challenge period on the CVA.
Philip de Klerk, interim chief financial officer at Clarks, said: “I am very pleased that the CVA was approved today. This is a significant step towards the formation of our new partnership with LionRock Capital.”
Gavin Maher, partner, Deloitte, who has worked on the project, said: “The approval of the CVA is an important milestone for Clarks, enabling the business to move forward. The CVA, together with the proposed investment from LionRock, will provide a stable platform upon which the management’s transformation strategy can be delivered.”
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