
Clarks in refinancing provided by LionRock - report
LionRock Capital is said to have provided shoe manufacturer and retailer Clarks with a refinancing package, according to a report by Sky News.
The company has been in discussions with private equity companies for a minority interest sale since May 2020, according to Unquote sister publication Mergermarket.
During negotiations, New York-based Sycamore Partners, consumer sector-focused GP OpCapita and Alteri Partners were rumoured to show interest in the business, which was expected to secure an investment worth £100-150m, according to a report by Mergermarket published in July.
A possible deal would see Clarks raise an investment in exchange for a dilution of the Clark family's holding from 85% to less than 50%.
In May, Clarks announced a restructuring plan that would cut 900 jobs with the business struggling amid the coronavirus pandemic. The company is said to have ruled out the use of a company voluntary agreement.
With 354 stores in the UK, Clarks posted more than £80m in post-tax loss last year.
The family stakeholders in the company have hired KPMG as adviser, while management has appointed Deloitte for counsel. PwC, via a syndicate of Clarks' lenders, has been involved in analysing the virus's impact.
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