Flotation ‘not off the agenda’ at UK shoemaker
In was reported in the UK press last week that the country’s largest shoe retailer, Clarks, has no intention of going to the market within the next two years, though the idea of a flotation was ‘not off the agenda’, according to the company’s chairman, Roger Peddar.
As recently as last December, the 175 year old company abandoned its plans for a share issue, after the shareholders' council concluded that this would offer no great benefit to the company. Speaking to the ‘Financial Times’ newspaper, Tim Parker, chief executive of the company since 1996, said Clark's future lay outside the UK and the company was looking for attractive acquisitions.
In March, in a deal worth £23 million ($34 million), Clarks bought the German children's shoe brand Elefanten (see leatherbiz.com story 12.03.01 – Europe section.) The company also last year closed its Weston-super-Mare factory where its famous desert boot was manufactured, while also reducing its production operations in Portugal.
Mr Parker said that although further restructuring was in the pipeline, no further redundancies would take place because of it.
Clarks was founded in 1825 after Quaker James Clark started creating slippers from sheepskin rugs produced by his brother Cyrus. Based in Somerset, the company is nearly 75 per cent owned by the 400-strong Clark family, with the remainer being held mainly by employees and ex-employees.
Earlier this month, the company posted profits of £47.5m ($68.24m) for the year ended January 31 2001. The figure was recorded in spite of increased discounting in the US, where consumer spending is falling. (See leatherbiz.com 16.4).
