Clarks has resorted to the insolvency measure because the proposed £100m rescue deal from Hong Kong-based private equity firm LionRock Capital is contingent on creditors approving the company voluntary arrangement (CVA), according to Sky News. 

If passed, the embattled retailer could close up to 50 poorly performing stores in the UK and axe hundreds of jobs, while moving the remainder of its estate on to turnover based rents in a similar deal to that secured by fashion brand New Look over the summer. 

Should the CVA pass and LionRock’s investment come through, Clarks would move out of private ownership for the first time in its 195-year history.