Hundreds of Hampshire jobs at risk as Clinton Cards enters administration

Hundreds of Hampshire jobs at risk as Clinton Cards goes into administration Hundreds of Hampshire jobs at risk as Clinton Cards goes into administration

Retailer Clinton Cards has collapsed into administration, putting hundreds of Hampshire jobs at risk.

Administrators at Zolfo Cooper warned it was likely that ''a number of stores'' will need to be closed to make the business viable.

Clinton, which has 25 stores in Hampshire including in Southampton, Eastleigh and Winchester, has been fighting for survival after failing to find a buyer for the company, or parts of the group.

The retailer, which operates 628 Clinton and 139 Birthdays stores, earlier said it had requested that its shares be suspended on the London Stock Exchange.

The move came after its banks – Barclays and taxpayer-backed Royal Bank of Scotland – sold the company’s £35m of loans to its biggest supplier, American Greetings.

But whereas the banks waived certain loan conditions, American Greetings told Clinton it would enforce the loans and push the company into administration.

Zolfo Cooper said the group had made losses of £130 million since 2004 and it was ''likely that a number of stores would need to be closed to make the business financially viable''.

The administrators added: “However, Clinton Cards and Birthdays are very well-known brands on the high street and we believe that there is a strong underlying core business. We are therefore confident that it is an attractive proposition for a range of potential buyers and welcome expressions of interest from third parties.”

The collapse of the firm jeopardises more than 8,000 jobs.

Clinton Cards reported a loss of £3.6m in the six months to January 29 after making a profit of £11.7m for the same period a year ago.

Comments(10)

Family Man says...
5:00pm Wed 9 May 12

Whilst the loss of so many jobs is regrettable, Clinton Cards as a business model is surely doomed to fail. In these austere and recessionary times, buying cards and similar items at the prices they offer is surely unaffordable for many. Yes it could be seen as a bit of an easy option insofar as you should find something suitable if you are desperately looking for something and don't really want to exercise too much imagination or initiative but the prices are simply too high, especially when compared to so many alternatives. And ok, it is a one stop shop but the prices cannot compete with cheaper alternatives. Clinton Cards in its present business model was always bound to fall victim of the current economic climate, it was merely a question of time.

Solomon's Boot says...
5:29pm Wed 9 May 12

Agreed. I'm amazed a shop selling cards and gifts has lasted as long as it has!!

BillyTheKid says...
6:14pm Wed 9 May 12

I haven't had to buy cards for quite a few years now, and I was a bit confused by people's comments on another thread, same topic, saying cards from Clintons were way too expensive. But when I looked at Clinton's website, I was staggered ! Average price for a fairly ordinary card : £5.00 ! And really posh ones up to £15.00 ! The "cheap" ones for £1-2.00 reminded me of those in the Christmas card boxes of 50 for a £1.00.

So, Clintons. Into Room 101 !

Gainer T Gopher says...
6:47pm Wed 9 May 12

so the UK banks sold the Clintons card loans to another greeting card company..... mmmm!!!! unfortunate pun, but didn't anyone see the outcome in the cards???

good-gosh says...
8:08pm Wed 9 May 12

get well soon

Linesman says...
8:25pm Wed 9 May 12

So much for the private sector providing jobs for those made redundant in the public sector.

Huffter says...
9:38pm Wed 9 May 12

Linesman wrote:
So much for the private sector providing jobs for those made redundant in the public sector.
And just how many people in the public sector have lost their jobs selling greetings cards?

Linesman says...
10:56pm Wed 9 May 12

Huffter wrote:
Linesman wrote:
So much for the private sector providing jobs for those made redundant in the public sector.
And just how many people in the public sector have lost their jobs selling greetings cards?
The chances are that, with some of the shops being closed by the administrator, there will be quite a few.

Georgem says...
11:55pm Wed 9 May 12

Linesman wrote:
So much for the private sector providing jobs for those made redundant in the public sector.
Congratulations, you win Kneejerkingest Comment Of The Week.

We thank you profusely for your services to not-thinking-for-you
rself.

Shoong says...
12:53pm Thu 10 May 12

Georgem wrote:
Linesman wrote:
So much for the private sector providing jobs for those made redundant in the public sector.
Congratulations, you win Kneejerkingest Comment Of The Week.

We thank you profusely for your services to not-thinking-for-you

rself.
Not sure what was more inevitable, the comment itself or the fact that it was copied from someone else on the last Clinton story.

Sad.

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