The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — British shoe retailer Clarks has picked Hong Kong-based investment firm LionRock Capital to enter exclusive talks for a controlling stake in the 195-year old business, a source familiar with the matter told Reuters.
LionRock has prevailed in an auction process which was launched earlier this year to inject much-needed cash into the struggling Somerset-based firm which is majority owned by the Clark family, the source said, speaking on condition of anonymity.
LionRock has elbowed out rival bidders including US private equity firm Sycamore Partners and is now in exclusive talks to secure a majority stake in the footwear chain valued at £100 million to £150 million ($129.31 million to $193.97 million), the source said.
A spokesman for Clarks said that as part of the company's turnaround strategy its board of directors was reviewing options to best position the business and its brand for future long-term growth.
ADVERTISEMENT
LionRock declined to comment.
By Pamela Barbaglia; editor: Rachel Armstrong.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.
The performance coach and Allbirds’ co-founder discuss the transformative power of togetherness in fostering a culture of excellence.