Clarks close to selling minority stake

United Kingdom
Published:  14 July, 2020

The family-owned manufacturer and retailer of footwear is reportedly close to selling a minority stake of the business.

According to Sky News media, a small number of private equity firms are seeking to provide new funding to Clarks, including U.S. based buyout firm Sycamore Partners and OpCapita. In May, Sky News revealed that the footwear chain was in discussions about a share sale that would dilute its family shareholders' controlling stake in the company. Allegedly, between £100 million (US$125 million) and £150 million (US$187.6 million) could be injected into the business as part of any deal.

The British footwear manufacturer and retailer is to cut 900 jobs, of which more than 100 are at its headquarters located in Somerset, South West England. The job cuts are to be carried out over the next 16 months and are said to be part of the “Made to Last” turnaround plan, which began at the end of 2019. Struggling with loss making, Clarks situation is said to have worsened with the collateral effects of the Covid-19 pandemic. Read more here.

Source: Sky News