C&J Clark Ltd, the 195-year-old shoe brand based in Street, has announced its agreement to form a partnership with LionRock Capital, an Asian private equity firm with a record of investing in consumer companies.

LionRock Capital will acquire a majority stake in Clarks, with the Clark family to remain invested in the business.

The £100 million investment will aim to position Clarks for future long-term sustainable growth and deliver its strategy to revitalise the iconic footwear brand as it enters its third century.

The partnership will also enable Clarks to benefit from the experience that LionRock Capital brings to grow the Clarks brand globally and most notably in China and across the rest of the Asia Pacific area.

The LionRock Capital investment in Clarks will be subject to shareholder approval, and shareholders will be asked to vote on the proposed transaction in December.

The investment is also subject to Company Voluntary Arrangements (CVA) for its UK and Republic of Ireland businesses in relation to its stores.

Clarks chief executive officer Giorgio Presca said: "For nearly 200 years, Clarks has been a pioneer of shoe-making, inventing the casual shoe and delivering innovative and iconic shoes consumers love and trust.

"Underpinned by a rich heritage and strong values, today we are a leading global footwear brand serving millions of consumers across the world.

"Our new strategy, in conjunction with our new partnership with LionRock Capital, will create a strong and sustainable future for this unique and iconic brand.

"Our strategy is designed to put the consumer at the heart of everything we do through a focus on brand segmentation and revitalising our brand communications, digital experience and product design to create consumer desire.

"The challenges to our business brought on by Covid-19 have meant that we need more resources and investment in order to fully deliver this strategy and safeguard the future of our business.

"The new partnership with LionRock Capital will provide this as well as the expertise to grow the Clarks brand in China, which remains a primary opportunity.

"Our people, partners and customers remain our top priority and we are committed to building a relevant, accessible and desirable brand that reflects the way consumers live their lives."

Philip de Klerk, interim chief financial officer at Clarks, said: "Like many businesses in our sector, the impact of the Covid-19 pandemic and the current economic uncertainty has created a tough retail environment.

"The investment from LionRock Capital and the restructuring of our retail footprint, combined with the on-going support from our existing lenders and our focus on cash management and cost control, will provide funding for the company's seasonal working capital needs and its transformation strategy.

"In order to address the permanent shift in structural shopping behaviour as a result of the Covid-19 pandemic, the CVA is being launched out of absolute necessity.

"The proposal to creditors outlines a combination of a reduction of rent and a move to rebase Clarks' rental cost base through a turnover-based model that aligns to future performance and reflects the wider retail market.

"As part of the CVA, we will move 60 of our 320 stores to nil rent. It is important to stress that we are not announcing the closure of any stores today, and employees and suppliers will continue to be paid."

Daniel Tseung, founder and managing director of LionRock Capital, said: "Clarks is one of the world's most recognized consumer names and we look forward to working with the Clark family in extending its tradition of providing customers with top quality products and exceptional service.

"We are extremely pleased to have the opportunity to partner with Clarks in expanding the company's global operations and worldwide customer footprint.

"Our investment will not only strengthen Clarks' position as one of the world's most recognized brands, but also allow growth into key emerging markets.

"We believe our investment would create a stable platform for the company from which to manage through the unprecedented crisis, holistically restructure and transform the business and further expedite the brand's growth globally going forward."

Chair of the Clark Family Shareholder Council, Irene Pedder, said: "For nearly 200 years, Clarks has pioneered a culture of innovation and craftsmanship, growing to become one of the world's most loved and respected footwear brands.

"The impact of the ongoing Covid-19 crisis has resulted in necessary steps being taken to safeguard the future of the Clarks brand, business and its people.

"We remain invested in Clarks' long-term growth and will remain committed shareholders to help steward this iconic company into its third century, while protecting the strong values and brand heritage Clarks is known for."