Clarks gets green light for CVA

British footwear retailer Clarks has received the green light from creditors to go ahead with a company voluntary arrangement (CVA). Earlier this month, Hong Kong-based private equity firm LionRock Capital agreed to acquire a 100 million pound majority stake in Clarks provided the retailer’s CVA got the go-ahead. The retailer announced Friday its proposal was approved by 90 percent of its creditors. The LionRock Capital investment is still subject to shareholder approval and the successful completion of a 28-day challenge period on the CVA. As part of the proposed CVA, Clarks is now looking to move 60 of its 320 stores to nil rent. Clarks CVA approved Philip de Klerk, interim chief financial officer at Clarks, said in a statement: “I am very pleased that the CVA was approved today. This is a significant step towards the formation of our new partnership with LionRock Capital.” Gavin Maher, partner at Deloitte, said: “The approval of the CVA is an important milestone for Clarks, enabling the business to move forward. The CVA, together with the proposed investment from LionRock, will provide a stable platform upon which the management’s transformation strategy can be delivered.” Photo credit: Clarks
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