Hong Kong-based private equity firm, LionRock Capital, has reached an agreement to acquire a majority stake in Clarks.
According to the company, the £100m rescue deal will enable Clarks to position the business for future long-term sustainable growth and deliver its strategy to revitalise the brand.
The deal means that none of the retailer’s 320 shops will be permanently closed and no jobs lost, the BBC reports.
The deal is subject to shareholder approval and will see the Clarks family lose control of the Somerset-based shoe brand for first time in its 195-year history.
Clarks will enter a CVA as part of the deal.
Commenting on today’s announcement, Clarks chief executive officer, Giorgio Presca said: “Our strategy is designed to put the consumer at the heart of everything we do through a focus on brand segmentation and revitalising our brand communications, digital experience and product design to create consumer desire. 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.
“The new partnership with LionRock Capital will provide this as well as the expertise to grow the Clarks brand in China, which remains a primary opportunity. Our people, partners and customers remain our top priority and we are committed to building a relevant, accessible and desirable brand that reflects the way consumers live their lives.”
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