Clarks calls in advisers as coronavirus impacts business

Clarks

Clarks has reportedly drafted in three accountancy firms to work on a potential restructuring as it seeks to survive through the coronavirus pandemic.

Clarks’ family shareholders have drafted in KPMG to advise them, while Deloitte has been hired by the company’s management team, Sky News reports.

PwC has also been called in to assess the impact of COVID-19 on the business.

Clarks said its leadership team is currently reviewing all options to “protect” the business and its workers.

The string of appointments come after a difficult period for Clarks, which was founded in 1825 and has become synonymous with generations of parents buying the first pairs of shoes for their children.

Less than six months ago, Clarks appointed advisers from McKinsey & Co as its sought to restructure its business.

The British footwear group recruited the management consultants as it was revealed that it had recorded a post-tax loss of £82.9m last year, in part as a result of a £50m hit on the value of its retail estate in the US and UK.

The retailer denied last month that it would be exploring the possibility of a CVA, which many retailers have recently used to undergo a radical restructuring in the changing fashion market.

Clarks currently has furloughed a proportion of its store staff under the Government’s Coronavirus Job Retention Scheme, and has been assessing options for the remainder of its workforce.

TheIndustry.fashion has created a dedicated hub for all updates regarding COVID-19.

TheIndustry.fashion has also released an In Focus report into the COVID-19 consumer, looking at how fashion shopping is being changed for good.