Clarks launches CVA in bid to close stores as part of rescue deal


Footwear specialist Clarks has launched a CVA in a bid to shutter stores and secure a much needed cash injection from outside investors.

Clarks has resorted to the insolvency measure because the proposed £100m rescue deal from Hong Kong-based private equity firm LionRock Capital is contingent on creditors approving the company voluntary arrangement (CVA), according to Sky News. 

If passed, the embattled retailer could close up to 50 poorly performing stores in the UK and axe hundreds of jobs, while moving the remainder of its estate on to turnover based rents in a similar deal to that secured by fashion brand New Look over the summer. 

Should the CVA pass and LionRock’s investment come through, Clarks would move out of private ownership for the first time in its 195-year history. 

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.