Reports suggest that British shoe specialist Clarks is to use a CVA in order to permanently close up to 50 stores and seek to switch others to a turnover based rent arrangement.
The action is understood to be essential if Clarks, currently majority-owned by descendants of the founders, is to secure essential funding from one of its suitors. These are widely believed to be LionRock Capital, a Hong Kong based private equity firm and Alteri Investors. A figure of £100 million is being mooted.
Meanwhile, Clarks which currently trades from over 300 UK stores, is in talks with assorted advisors in respect of its pension fund.
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