Clarks gets shareholder approval for LionRock Capital partnership

British footwear retailer Clarks has been given the green light from its shareholders to go ahead with its proposed partnership with Hong Kong-based private equity firm LionRock Capital.

Last month, LionRock Capital agreed to acquire a 100 million pound majority stake in Clarks provided the British footwear retailer received approval from creditors to launch a company voluntary arrangement (CVA).

A few weeks later, Clarks’ CVA was approved by creditors. As part of the proposed CVA, Clarks is now looking to move 60 of its 320 stores to nil rent.

On Wednesday, it was confirmed that the Clarks-LionRock Capital partnership would therefore go ahead.

The deal will see LionRock Capital acquire a 51 percent stake in the 195-year-old retailer, while the founding Clark family will remain a key shareholder in the business.

The 100 million pound investment will “enable Clarks to position the business for future long-term sustainable growth”, Clarks has previously said.

Photo credit: Clarks, Facebook