Tue, 07 Apr 2020 | COMMERCIAL PROPERTY
Footwear retailer Clarks has confirmed that it will close a small number of stores and has reportedly engaged investment bank Rothschild to explore potential financing facilities.
The permanent closures have been selected from stores with leases expiring in May and are said to not be linked to the coronavirus lockdown. Clarks has 347 stores across its UK portfolio, a “small number” of which will not reopen once the enforced closure of non-essential businesses ends.
The company has furloughed thousands of staff under the UK government’s Coronavirus Job Retention Scheme and is said to have appointed Rothschild to manage its financing options and access new borrowing facilities.
It has also been working on a new corporate blueprint with management consultant McKinsey and part of this has seen it review all stores, leading to the decision not to renew leases on some.
A spokesperson for the company said: “Clarks continually reviews all its stores to ensure that they are the right size and located in the right areas in order to provide the best possible service and offering to its customers.”
“As part of this normal review, we have decided not to renew the leases on a small number of stores and as such, these will cease to trade and will not reopen following the coronavirus closures.”
In its latest set of earnings, to the year ended February 2 2019, Clarks recorded turnover of £790 million, down from £820.4 million the year before, while it saw its operating loss increase from £3.7 million in 2017/2018 to £48.7 million. Its gross profits were £339 million, down from £366.9 million.
At the time, Clarks registered fixed assets worth £168.7 million and total current assets of £510.2 million, with net assets less current liabilities of £153.3 million.
One of the best ways to find properties below market price is to look at recent administrations.
A small team of three of us focus on sales, purchasing, and administrative tasks. The business could easily be integrated within an existing team to support higher profits.
RELOCATABLE
Specialises in sales of rare, vintage and celebrity-owned instruments, including acoustic, electric and bass guitars, as well as amplifiers, effects pedals and accessories.
LEASEHOLD
Offers an extensive range of sports, prestige and exotic vehicles to customers and clients throughout the UK. Utilises a highly experienced team to provide vehicle servicing, valeting and detailing, delivering cars on time, within budget and with a h...
LEASEHOLD
|
09
|
|
Apr
|
Topshop flagship store up for sale | COMMERCIAL PROPERTY
Topshop's flagship Oxford Street store in London is dra...
|
09
|
|
Apr
|
Gestamp’s former Washington warehouse hits the market in £6.5m auction | COMMERCIAL PROPERTY
The former Washington base of international car parts manufa...
|
08
|
|
Apr
|
Decorating contractor targets acquisitions after MBO | MBO/MBI
Scottish commercial decorating contractor Bell Group has com...
Sign up to receive our acquisition alert emails to get your FREE guide
|
24
|
|
Apr
|
Majestic Wine considering the sale of its UK stores | BUSINESS SALE
Thought to be the UK’s largest specialist retailer of ...
|
13
|
|
Jul
|
Pub group looking to sell its commercial property division | DIVISION SALE
Ei Group, the UK’s largest pub company, is looking to ...
|
17
|
|
Dec
|
Travel Counsellors to explore £200m sale | BUSINESS SALE
The owners of Manchester-based holiday planner Travel Counse...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources