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.
The company has been established for 32 years as a seller of standard and flame-retardant sheet materials to end users in the entertainment and events industries.
Offering to the market this leasehold food and wine shop situated in prime location of South Ruislip.
LEASEHOLD
An award-winning farm and coffee shop, situated in a superb high profile trading position on the A65.
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.