Private Equity News UK – Hong Kong’s LionRock exits Clarks UK brand
Clarks UK, a UK-based footwear and accessories company, has announced the exit of its Hong Kong-based LionRock brand. The company cited “difficult trading conditions” as the reason for the decision, but did not provide any further details. The LionRock brand is known for its luxury-oriented footwear, with a focus on high-end fashion. Clarks UK has operated the LionRock brand since 2006, and the company has approximately 150 employees in Hong Kong. The company’s Clarks UK store currently remains open.
Clarks UK store presence on the back foot
Clarks UK store presence on the back foot following the announcement that Hong Kong-based LionRock is exiting the Clarks UK brand, leaving 15 stores nationwide operated by Shoes Department. The move comes as a result of declining sales and an increasing focus on international Expansion for the company, with no plans to re-enter the UK market. This leaves British high street retailer Beams as the only main operator of a standalone Clarks store in the UK market.
Clarks calls in McKinsey to conduct business review
Clarks UK is currently facing an uncertain future as Hong Kong-based LionRock exits the brand. Consequently, the company has decided to appoint McKinsey to conduct a business review in order to determine areas which need improvement and how best to address them. If developments do not improve by the end of this year, Clarks plans on closing its store – a huge blow for British shoppers who have been loyal to the company over the years. With so many other shoe brands available in retail outlets, it will be interesting to see if Clarks can make a comeback with new and innovative ideas
Clarks UK has announced plans to close 50 stores in the UK over the next three years. This is a result of falling sales and an increased focus on online shopping. The company is blaming Brexit for the decline in sales and it’s likely other factors are also involved, such as rising competition from Amazon. The loss of Clarks UK will leave a significant hole in the market place – it was one of the leading British shoe brands.
Clarks to cut 900 jobs globally
Clarks, one of the leading British shoe brands, is cutting 900 jobs globally due to tough competition from fast-fashion retailers. LionRock, Hong Kong-based company that had majority stake in the company, has announced it will sell its stake to British shoe manufacturer Clarks for an undisclosed sum. With this move, Clarks intends to reduce its global footprint by 900 jobs across its brands – including Clarks and Wallis and Burton. The sale comes as Clarks battles tough competition from fast-fashion retailers such as Zara and H&M which are driving down margins on shoes. The loss of the UK store will leave 14 stores in total operating across the UK (down from 47 last year).
Clarks considers permanently closing stores
Clarks UK has decided to close some of its stores permanently due to declining sales. This comes as no surprise, as the company has been struggling for a while now. In order to stay afloat and protect its future, Clarks is also considering selling its Australian brand LionRock. Hong Kong-based Clarks operates in the global leather goods market and is one of the leading players here. The decision to sell Lions Rock was not easy but it is necessary in order to safeguard the company’s long-term sustainability.