Clarks seeks rent reductions

Clarks has reportedly asked landlords for rent reductions of up to 30 percent across its store portfolio.

The British retailer has offered to extend leases on some stores in return for its proposed rent cuts, The Sunday Times reported. A source told the newspaper that too many of Clarks' stores were profitable for it to be a CVA candidate.

A Clarks spokesperson said in a statement: “Since early 2017, when Clarks announced that it would be conducting a full review and modernisation of the company’s property portfolio, we have been constantly reviewing our store estate to ensure that all stores are the right size and located in the right places to enable us to provide the right offering for customers.

“As a key brand on many of the UK’s high streets, we are committed to retaining our presence and ensuring our stores continue to play a critical role in delivering a great experience for our customers.”

According to the company's most recent full-year report for the 12 months to 3 February, 2018, operating profit dropped 29 percent to 29.3 million pounds while pre-tax profits were at 19.7 million pounds. Full-year sales came in at 1.54 billion pounds.

River Island, Jack Wills and Schuh have asked for similar rent cuts in recent months as retailers continue to struggle with difficult UK trading conditions.

Photo credit: Clarks Shoes, Facebook