Hong Kong investor reportedly joins Clarks bidding war

Hong Kong-based private equity firm LionRock Capital has reportedly joined the bidding war for a majority stake in UK footwear retailer Clarks.

The firm is now one of two remaining bidders for Clarks, Sky News reports. Discussions over a deal expected to close in the next month and include a rival bid from investment firm Alteri Investors.

A transaction is likely to involve the founding Clark family keeping an equity stake in the business, but that could be reduced to below 50 percent, sources said.

In May, Clarks announced it would be cutting around 900 jobs as part of a ‘Made To Last’ transformation strategy. The retailer said those job losses would be partly balanced by the creation of around 200 jobs.

CEO Giorgio Presca said at the time: “There are exciting opportunities ahead for our business, and we are having to make some difficult decisions to get there. We thank all affected staff for their contribution to our business and they leave their roles with our heartfelt respect and support.”

Photo credit: Clarks, Facebook