One of the UK’s oldest shoe stores is preparing to close up to 50 stores.
Clarks is in talks over a bailout deal with a Hong Kong-based private equity firm called LionRock Capital.
According to Sky newsAccording to sources, a voluntary agreement by the company could include the closure of 50 stores, which would mean hundreds of job cuts – though the exact number was unclear as of Tuesday (Oct. 7).
When a deal is closed, it means the Clarks founding family shareholder will have to give up majority control for the first time in its 195-year history.
Uncertainty about Clarks’ future follows the coronavirus pandemic.
Similar to other high street retailers, the shoe store had to close for months when the nation was locked down.
Many other retailers have been forced to cut jobs or have completely collapsed.
In May, Clarks’ new managing director, Giorgio Presca, unveiled a strategy aimed at leading the retailer into its third century of operation.
It is about 900 job losses, with 200 new roles being created.