The deal will see LionRock Capital take a majority stake in the retailer, though the Clark family will retain a minority holding.
Footwear retailer Clarks has been rescued with a £100m investment by a Hong Kong private equity firm – in a deal that will also involve a restructuring of its UK and Ireland store network.
The investment by LionRock Capital is conditional on a company voluntary arrangement (CVA), a form of insolvency allowing it to slash rents to nothing at 60 of its 320 stores.
Interim finance director Philip de Klerk said Clarks was “not announcing the closure of any stores today” and that employees and suppliers would continue to be paid.