Clarks to permanently shut stores as it weighs survival options
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Footwear retailer Clarks has elected to close some of its UK stores permanently once the current government lockdown on businesses in response to the coronavirus pandemic is lifted.
The decision is an effort to survive the hit to its business as the virus keeps consumers at home and has curbed consumer spending. It will affect what the company described as “a small number” of the chain’s 347 outlets in the territory, with the performance and location of each of these outlets now under close scrutiny.
Clarks has also reportedly drafted in investment bank Rothschild to assist it in its financing options and flesh out a turnaround plan for after the pandemic passes
Many of the firm’s sales staff are now furloughed at home with their employment secured by the government’s recently introduced job retention scheme.
Questions & Answers
Q.Which stores will be closed permanently?
Which stores will be closed permanently?
Clarks will close a small number of its 347 UK outlets. The company is currently scrutinising the performance and location of each store to make these decisions.
Q.What is the company doing to secure its financial future?
What is the company doing to secure its financial future?
Clarks has engaged investment bank Rothschild to help explore its financing options. This collaboration aims to develop a comprehensive turnaround plan for the business once the pandemic subsides.
Q.What is the current employment status of Clarks' sales staff?
What is the current employment status of Clarks' sales staff?
Many of Clarks' sales staff are currently furloughed at home. Their employment is secured by the government's recently introduced job retention scheme, offering protection during the lockdown.