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Clinton Cards to be placed in administration
CLINTON Cards, the UK's largest card retailer, has suspended its shares as it expects to be placed in administration.
In a statement to the stock exchange, the business said it expected its largest supplier, a subsidiary of American Greetings Corporation, to take steps to place the company and its subsidiaries into administration later today.
Clinton Cards, which employs about 4,800 people across 628 stores, was informed last night that its banks, Barclays Bank and Royal Bank of Scotland, had sold the company's debts of about £35 million to American Greetings.
Clinton’s, which has stores in Coney Street, York, Monks Cross and Selby, said it believed, from discussions with American Greetings, that once they bought its loan facilities, they would support the business.
“However, having secured control of the debt, American Greetings immediately informed the board that it intended to enforce the loan against the company and 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,” it said.
The business had been expecting to review its business plans and strategy to try to turn the business around with sales down 3.5 per cent in the last 14 weeks, on the same period last year.