Clarks creditors have approved the footwear retailer’s restructuring plan, clearing the path for a £100m private equity deal that will take the 195-year-old firm out of family ownership for the first time.
Clarks announced this afternoon that its Company Voluntary Arrangement proposal, which was launched earlier this month, has been approved by more than 90 per cent of its creditors, including landlords.
The high street firm was seeking landlord approval to switch to a turnover-based rental model. It has not confirmed whether any stores will close.
The approval was a requirement of Lionrock Capital’s £100m investment in the high street retailer, for which it will obtain a majority share of the business.
Lionrock’s stake is still subject to shareholder approval and the successful completion of a 28-day challenge period on the restructuring plan.
Clarks interim chief financial officer Philip de Klerk 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 at Deloitte, 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.”
More to follow