Clintons Cards is saved from closure in time for Christmas as firm secures major rescue deal safeguarding 2,500 jobs
- Clintons faced cash flow pressures amid challenging high street conditions
- Greetings card chain sold back to its existing owners as part of a rescue deal
- Deal safeguards 2,500 employees and keep 334 stores open over festive season
Clintons Cards has been saved from closure in a rescue deal that secures the jobs of 2,500 staff who were bracing for a miserable Christmas unemployed.
Suffering a squeeze from online competition, the high street retailer’s recent finances have been flagging and threatened to sink the store entirely.
But it has gone into administration before being immediately sold to Esquire Retail – a new firm set up and controlled by the Weiss family, which has owned Clintons for seven years.
Although the Weiss family still face an uphill struggle to revive the fortunes of the cash-starved card company, the deal safeguards its 2,500 employees and 334 stores throughout the festive season.
Around 2,500 jobs have been secured at Clintons after the greetings card chain was sold back to its existing owners as part of a rescue deal
KPMG said the so-called pre-pack administration came after mounting pressures in the face of challenging high street trading conditions.
The deal also marks the second time Clintons has gone into administration in seven years.
Owners the Weiss family had been looking for an exit with a possible sale of Clintons, but the chain had also been holding talks with landlords over a possible company voluntary arrangement (CVA) to shut stores and slash rents.
Eddie Shepherd, chief executive of Clintons, said: ‘Despite receiving support from a number of landlords, we were unfortunately unable to secure the requisite support needed to successfully launch our proposals.
‘With no other investment options available, we therefore had to take the difficult step to place the company into administration.’
He added: ‘We are confident that this deal will kickstart a new chapter for our business.’