Card retailer seals rescue deal with existing owners
Clintons, the card retailer, has been bought out of administration in a pre-agreed deal with the chain’s existing US owners, the Weiss family, who regained control immediately after it was put into administration.
The deal follows Clintons failed attempts to win support from landlords for a company voluntary arrangement (CVA) under which it wanted to cut rents and close up to 66 stores.
Clintons previously fell into administration in 2012. The card retailer has faced competition from discounter Card Factory and began contacting out landlords last month about a restructure.
The administration deal has safeguarded jobs for the group’s entire workforce and all 334 stores will continue to trade. It also removes tens of millions of pounds of debts owed to suppliers.
Eddie Shepherd, chief executive of Clintons, said: “We are pleased to have been able to secure the future of the Clintons business, protecting all of our talented 2,500-strong workforce and ensuring continuation of trade across all of our UK store network at what is a crucial time of the year for the business.
“Like so many of our fellow high street retailers, we have worked tirelessly to contend with the maelstrom of issues impacting the sector, from business rates pressures, to fragile consumer confidence and the lack of clarity around the taxation of online retail businesses.”