Footwear specialist Clarks has slumped to record losses in its more recent full-year results due to coronavirus restrictions and store closures.
For the year to January 30, 2021, Clarks reported record losses of £181.8m after tax, down from a profit before tax of £17.2m in the previous year.
Group revenues for the period also slumped, falling to £775m from more than £1.37bn the previous year.
Underlying operating loss for the 52 weeks to January 30, 2021, was £70.9m compared with a profit of £46.2m in the previous year.
At the end of 2020, Clarks was sold to private equity firm LionRock Capital, which injected £100m of funds into the retailer after a completed company voluntary arrangement.
The most recent set of annual results show that LionRock has a 51% controlling stake in Clarks following the completion of the refinancing in February 2021.
On top of the £29.1m refinancing costs, a further £32.5m in reorganisation costs were accrued during the year, as well as £18.5m in onerous lease and store asset impairments.
“Being a global footwear retailer with a seasonally driven business model, the impact of Covid-19 in the year was immediate given that reduced demand coincided with the commencement of our spring/summer season and new inventory resulted in a significant working capital impact, which continues into 2021,” said Clarks.
“In addition, many of our wholesale partners imposed extended payment terms, which has delayed the receipt of cash flow.”
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