London, 23rd November 2020 - Brown Rudnick is delighted to announce the approval of a company voluntary arrangement for its client Clarks International. Over 90% by value of those creditors voting approved the CVA at a virtual meeting held on Friday 20 November.

The Clarks Group is a well-known global shoe brand with 195 years of heritage. It employs over 10,000 people around the world, has 7,000 shareholders and last year sold around 43 million pairs of shoes. However, like most retailers, it has experienced unforeseen and severe challenges this year which have necessitated a wholescale restructure.

London based restructuring partners Richard Obank and Colin Ashford led a multi-disciplinary team at the firm to deliver the rescue, which involves a debt and pension restructuring, injection of £100m of equity from LionRock Capital, and a CVA, working alongside Burgess Salmon, who advised the company on banking and pension issues.

Obank said “We are extremely pleased to have supported Clarks over the last 7 months culminating in a positive vote in favour of the CVA by creditors. The focus now is on completing the rescue and restructuring with the support of the equity investor and key stakeholders to ensure Clarks, one of the UK’s greatest retail brands, has a viable business going forward and preserving thousands of jobs in the run up to Christmas.” Ashford added that “having only joined the firm in March this year we are delighted with the strength in depth that the team was able to offer on such a complex and high profile matter”.

There remains a shareholder vote required to approve the equity investment, expected to take place in mid-December, which process is being run by PE specialist Philip Watkins at Brown Rudnick.

Philip de Klerk, CFO at Clarks said that “the last 7 months has been an unprecedented journey for us involving many highs and lows but the Brown Rudnick team have calmly helped guide us through using their experience and commercial approach and we are, of course, extremely pleased at the outcome”.

 

About Brown Rudnick LLP

Brown Rudnick combines ingenuity with experience to achieve great outcomes for our clients. It delivers partner-driven services and excellence across its practice areas, which include special situations, finance & litigation funding, distressed debt, corporate restructuring, M&A, tech & life science investments, white collar defence, IP & international disputes. It has offices in key financial centers in the US and Europe and serves its clients in the Middle East, North Africa, Eastern Europe, the Caribbean and Latin America.

For further information, please contact:

Desiree Maghoo
Questor Consulting
+447775522740
dmaghoo@questorconsulting.com