Clarks in Street respond to reports that a company restructuring is imminent

  Posted: 08.05.20 at 16:43 by Tim Lethaby

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Street-based shoe brand Clarks have responded to reports that a company restructuring is imminent.

Sky News reported this week that three of the four big accountancy firms - PricewaterhouseCoopers, KPMG and Deloitte - have been asked by the 195-year-old shoe retailer to work on a potential restructuring of the business.

Speaking to Street Nub News today (May 8) a Clarks spokesperson said: "Like all businesses, Clarks continues to face the fast-changing challenges of operating in today’s environment of rising economic and political uncertainty.

"Our leadership team is currently reviewing all options to protect our business, our people and the Clarks brand for future long-term growth. It is our policy not to comment on specific commercial appointments.”

The spokesperson also confirmed that Clarks has furloughed staff while stores are temporarily closed and has taken advantage of the Coronavirus Job Retention Scheme.

Sky News reported that it had learnt that Clarks' family shareholders have drafted in KPMG to advise them, while Deloitte has been hired by the company's management team.

It also said city sources had said that PricewaterhouseCoopers had been engaged by a syndicate of the footwear chain's lenders as they assess the coronavirus crisis's impact on its prospects.

Clarks remains largely owned by descendants of Cyrus and James Clark, who founded the company in Street nearly two centuries ago.

Under new chief executive Giorgio Presca, Clarks is expected to outline its plans in the coming months, according to Sky News.

In the last year for which figures are available, the company reported a post-tax loss of more than £80 million.

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