Clarks majority stake acquisition completed, new CEO named

Hong Kong-based private equity firm LionRock Capital has completed its 100 million pound investment in Clarks.

The deal was first announced back in November, with LionRock agreeing to acquire a 51 percent majority stake in Clarks provided the British footwear retailer received approval from creditors to launch a company voluntary arrangement (CVA).

A few weeks later, the CVA was approved by creditors, paving the way for the retailer to switch its stores to a turnover-based rents model.

LionRock also confirmed Monday that Clarks CEO Giorgio Presca has exited the company to pursue other opportunities. Replacing him is non-executive director Victor Herrero, who will also take on the role of chairman.

Herrero is chairman of Bossini, a non-executive director of Viva China Holdings Limited, and was CEO of Guess between 2015 and 2019.

Herrero thanked outgoing CEO Presca for his “much-valued” work at Clarks over the last two years.

He said in a release: “I am excited about leading Clarks to its next level and partnering with LionRock Capital and the Clark family to build a strong and sustainable future for this iconic and much-loved global brand.”

Clarks under new ownership

Last month, Clarks reported an 8 percent pre-Covid drop in sales for the year ended February 2020 to 725.3 million pounds.

The company said the fall reflected “continued difficult conditions in the UK and ROI retail channel as footfall declines continued”.

Its operating loss was 14.1 million pounds, down from a loss of 48.7 million pounds the year before, while its loss after tax was 15 million pounds, compared to a loss of 20.9 million pounds a year earlier.

“We are extremely pleased to formalise our partnership with Clarks,” Daniel Tseung, founder and managing director of LionRock Capital, said Monday.

“Clarks is one of the world’s most recognised consumer names and we look forward to working with the Clark family and Clarks’ leadership team to build on its tradition of providing customers around the world with top quality products and exceptional service.”

Image: Clarks, Facebook