May 9, 2012 12.07 pm This story is over 114 months old

Lincoln jobs at risk as Clinton Cards goes into administration

Administration: Dozens of jobs are at risk in Lincolnshire as card retailer Clinton Cards announced it is going into administration.

Dozens of jobs are at risk in Lincolnshire after card retailer Clinton Cards has announced it is going into administration.

Clinton Cards has two stores in Lincoln, on the High Street and in the Waterside Shopping Centre.

Pure Party in the Waterside Shopping Centre, which sells fancy dress and other items for celebratory events, is run by Clinton.

Clinton Cards also has shops in Gainsborough, Louth and Grantham.

The company runs 600 stores around the UK and has requested for trading of its shares to be suspended.

While Clinton has confirmed some stores will be closed, it is currently unknown which these will be.

Administrators have vowed to keep as many stores as possible running as normal until a buyer is found for the company.

Across the country, the card retailer employs more than 8,000 people.

The news comes after the company reported a loss of £3.7 million for the six months up to the end of January.

Like-for-like sales have also dropped 3.5% in the past 14 weeks compared to the same time last year.

Its banks (Barclays and the Royal Bank of Scotland) also sold the company’s loans to its largest supplier, American Greetings.

American Greetings requested Clinton Cards pay back an amount of the loan, but it is unable to do so, leading to the decision to go into administration.

In a statement, the Clinton Cards said: “The board has concluded that because it is unable to repay the loan it has no option but to concur with American Greetings proposal to place the company and its subsidiaries into administration.

“Having completed the strategic review, the board recognized the need to restructure the business and had been expecting to review its business plans and strategy with its stakeholders and exploring ways to produce a better outcome for the company’s stakeholders as a whole.”

Related Reports: The Guardian | BBC News | The Telegraph

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