Auditors to Clarks have warned that the shoe brand could cease to be a going concern.
EY has flagged up a risk to the chain’s finances in the accounts and said a poor period of trading may leave Clarks, which has more than 1,150 shops, in breach of banking covenants.
Clarks’ sales increased by 18.7% to £920.3m in the year to 29 January, returning to a profit of £55.4m, compared with a loss of £180.2m the year before.
