Month: November 2022

On 17 November 2022, LionRock Capital (“LionRock”) entered into an agreement with Viva China Holdings Limited (“Viva China”), where LionRock conditionally agreed to sell to Viva China the remaining stake in Clarks. The transaction is expected to close by January 2023. After the completion of the transaction, Viva China will become the majority shareholder in Clarks. Clark family will remain as a key shareholder in the business.

In February 2021, LionRock acquired a majority stake in Clarks, the 197-year-old world- renowned British shoe brand. As a result of effective restructuring, financial performance of Clarks has improved significantly. Clarks achieved a global revenue of £920m and profit after tax of £55m for the year ended 29 January 2022, compared to a loss after tax position of £180m for the year ended 30 January 2021.

Daniel Tseung, Founder and Managing Director of LionRock remarked: “Since LionRock Capital’s investment in Clarks, we have successfully turned around the business. It’s been a pleasure working with Viva China and the Clark family in transforming the business and expediting the brand’s growth globally, especially to tap into the China market.”

“We are extremely pleased to see the progress in expanding the company’s global operations and worldwide customer footprint. Our investment has strengthened Clarks’ position as one of the world’s most recognized brands and generated attractive returns for our investors.”

From The Retail Bulletin, by Natalie Fresen

Shoe retailer Clarks has reported a swing back to profit following a period of “recovery and repositioning”.

The 197-year-old firm, which is headquartered in Street in Somerset, saw turnover grow to £920.3m during the financial year to the end of January 2022 – up 18% from £775m 12 months earlier. Profit after tax also jumped to £55.4m from a loss of £180.2m in 2020-2021.

Clarks, which appointed former New Balance boss Jon Ram as its new chief executive in March, said it was able to deliver a year of “recovery and repositioning” despite the lingering impact of the pandemic on the global supply chain.

Bosses attributed the return to profitability to a mixture of reduced discounting through its online and re-opened stores, and fewer overhead costs resulting from its ongoing “transformation programme.”

A spokesperson for Clarks said: “Although the global economic climate remains uncertain, we’re pleased to report a steady recovery and increase in consumer demand across all our markets, with profit after tax of £55.4m.

“In the current financial year, we’ve appointed a new CEO, Jon Ram, and we are focused on a business strategy designed to grow our business in current and new markets, and to build a foundation for sustainable growth in the years ahead.”

In May 2020, the brand announced it would cut 900 jobs as part of its ‘made to last’ strategy to revitalise the business through the pandemic. Hong Kong-based LionRock Capital completed a £100m deal for a majority stake in the business in February 2021, which Clarks said it had allowed it to turn the business around and had saved jobs and stores.