Does China Own Clarks Shoes?

Clarks shoes are more than just footwear. They are a symbol of British heritage, craftsmanship and innovation. Many loyal Clarks customers have probably wondered – does China own Clarks shoes?

As Clarks shoes become increasingly global, it is natural to wonder. This question has likely crossed the minds of many loyal Clarks customers. In this blog post, we’ll answer this question to uncover the realities behind this question. Let’s uncover the truth.

Does China Own Clarks Shoes?

Yes, China owns Clarks shoes, but not entirely. According to our findings, as of 2 October 2023, Clarks shoes are majority owned by Viva Goods, a company that acquired 51% of LionRock Capital, a Hong Kong-based private equity firm that invested £100 million in Clarks in 2020. However, the Clark family still retains a 49% stake in the company and has a say in its direction and strategy. Therefore, Clarks shoes are partly British and partly Chinese.

The Origins of Clarks Shoes

Clarks Shoes was founded by two Quaker brothers, Cyrus and James Clark, in Somerset, England. They began by making rugs from sheepskins, and James used some of the offcuts to produce slippers. These, known as the ‘Brown Petersburgh,’ became the first Clarks shoes.

The company grew steadily over the years, introducing innovations such as:

• The Hygienic range of shoes that followed the natural shape of the foot
• The Desert Boot, inspired by Nathan Clark’s (great-grandson of James Clark) experience in Burma during World War II
• The Wallabee, a moccasin-style shoe that became popular among hip-hop artists

The Desert Boot became a cult classic worn by celebrities such as the Beatles, Oasis, and Bob Marley.

Clark Shoes also expanded internationally, opening stores and factories in Europe, North America, Asia, and Africa. By 2013, Clarks was the 31st-largest private company in the UK, with sales of £1.4 billion and profits of £150 million.

The Challenges of Clarks Shoes

However, in recent years, Clarks shoes faced increasing competition from both discount and upmarket rivals, as well as changing consumer tastes and preferences. The company struggled to keep up with the trends and demands of the market and saw its sales and profits decline.

The COVID-19 pandemic also hit Clarks hard, as lockdowns and social distancing measures reduced footfall and demand for footwear. The company had to close hundreds of stores, cut thousands of jobs, and cancel its dividend to shareholders.

The company also had difficulties refinancing its debts and was in danger of going into administration. The Clark family, which had owned and controlled the company for nearly 200 years, had to look for a buyer or an investor to save the business.

The Deal with LionRock Capital

In November 2020, Clarks announced that it had secured a £100 million investment from LionRock Capital, a Hong Kong-based private equity firm that focuses on consumer brands. As part of the deal, LionRock acquired a 51% controlling stake in Clarks, while the Clark family retained a 49% minority stake.

The deal also involved a company voluntary arrangement (CVA), which is a form of administration that allows a company to restructure its debts and operations with the approval of its creditors. Under the CVA, Clarks agreed to pay no rent on some of its stores and reduced rent on others.

The deal was approved by 90% of Clarks’ creditors and shareholders in December 2020. The company said that the deal would enable it to “build on its heritage and continue designing and making shoes that consumers love.”

What Does This Mean for Clarks Shoes?

The deal with LionRock Capital has given Clarks a lifeline to survive the crisis and recover from its losses. It has also given the company access to new markets and opportunities, especially in Asia.

LionRock Capital is backed by Li Ning, a former Chinese Olympic gymnast who founded his own sportswear brand in 1990. Li Ning is now one of China’s leading sports brands, with sales of over £1.7 billion in 2019.

Li Ning and LionRock have said that they will use their expertise and contacts to help Clarks expand in China and beyond. They have also said that they will respect the heritage and values of Clarks and support its innovation and development.

However, some industry insiders have expressed doubts about whether Clarks can retain its identity and appeal under Chinese ownership. They have also questioned whether Clarks can compete with other global brands, such as Dr Martens and Birkenstock, which have successfully reinvented themselves in recent years.

The Future of Clarks Shoes

Clarks shoes have been through many changes and challenges in their nearly 200-year history. They have adapted to the times and the tastes of their customers while maintaining their quality and style.

The deal with LionRock Capital has given them a new opportunity to expand their global presence and reach new audiences. But will they be able to preserve their identity and appeal under Chinese ownership? What do you think? Let us know in the comments below.

Conclusion:

In conclusion, yes, China does own Clarks shoes now, but only partially. In 2020, Hong Kong-based private equity firm LionRock Capital, which is backed by Chinese sportswear giant Li Ning, acquired a 51% controlling stake in the iconic British shoemaker. However, the Clark family retained 49% ownership. So, while Clarks is now majority Chinese-owned, it remains partly British as well. 

The deal has provided a lifeline for the struggling company to survive its recent challenges and expand globally, especially in Asia. However, it remains to be seen whether Clarks can preserve its heritage and identity under partial Chinese ownership. The company will need to strike a balance between staying true to its roots while also adapting to new markets. 

Ultimately, the future of this nearly 200-year-old brand will depend on whether it can leverage the opportunities provided by its new Chinese owner while retaining the qualities that have made Clarks shoes beloved by generations. Fans of the Desert Boot and Wallabee can only hope this iconic brand will endure and thrive in the years ahead.

If you are interested in learning more about Clarks shoes and their history, you can visit their official website or follow them on social media. You can also check out their latest collections and offers on their online store.

And if you are a fan of Clarks shoes, don’t forget to leave a comment below and tell us what you think about their new Chinese owner.