The administrators, Zolfo Cooper, have decided to shut 350 of the 784 Clinton Cards stores as it seeks to try and rescue the business. All of the Birthdays branded stores will be closed. The company had tried to sell the Birthdays stores previously but it looks like there was absolutely no value in those stores. The administrators had said that the portfolio of real estate was simply untenable. One has to presume that the landlords were not prepared to offer any concessions on the rental terms.
The move will see 2,800 full and part-time staff lose their jobs in a wave of closures starting next week and continuing into June. The estate will slimmed down so that the company is more attractive to potential purchasers. So far most interest has centred around the possible purchase by WH Smith, although there are likely to be other bidders. Administration followed by a sale is often the best way to return money to creditors, keep the profitable part of the business going and preserve jobs.
If you are an employee of the business please refer to our help for employee pages where we give details of your rights and what compensation might be available.