Zolfo Cooper statement regarding Clinton Cards Plc and subsidiaries (In Administration)

Wednesday, 9 May, 2012 - 20:00

Zolfo Cooper statement regarding Clinton Cards Plc and subsidiaries (In Administration)

Peter Saville, Simon Freakley and Anne O’Keefe, Partners at Corporate Advisory and Restructuring specialists Zolfo Cooper, were appointed Joint Administrators over Clinton Cards Plc and its subsidiaries, including Birthdays Retail Limited, on 9 May 2012.

The Group is the UK’s largest specialist retailer of greetings cards and related products with in excess of 750 stores and 2011 revenues of over £360 million across its two retail brands, Clinton Cards and Birthdays.

Clintons was founded in 1968 and is listed on the London Stock Exchange. It has a significant high street presence and employs over 8,000 full time and part time staff.

The Joint Administrators were appointed after the Group experienced cash flow problems due to extremely challenging trading conditions. Following appointment, the Joint Administrators will continue to trade the Group while exploring all possible options for its future including a sale of all or parts of the business.

Peter Saville, Joint Administrator and Partner at Zolfo Cooper said:

“Recently, Clintons has been faced with extremely challenging trading conditions, particularly in its Birthdays subsidiary, where the combined cost to the Group in terms of acquisition cost and accumulated losses is estimated to have been in excess of £130 million since 2004. Despite evaluating ways to restructure its business, Clintons was unfortunately unable to secure adequate support or funding for its restructuring plans. The challenging business environment, and in particular the increased competition for greetings cards and related products, meant that the Group required radical restructuring and administration was the last remaining option available.”

“Our first priority is to stabilise the business and assess its financial position. We will continue to trade the business whilst we undertake a full marketing exercise to find buyers for all or parts of the Group so that the best possible outcome can be achieved for stakeholders.”

“It is likely that a number of stores will need to be closed in order to make the business financially viable. 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.”

ENDS

For all media enquiries, please contact:

Zolfo Cooper Press Office
Tel: +44 (0) 20 7332 5226
pressoffice@zolfocooper.eu

For all other enquiries relating to Clintons, please use the relevant contact details below:

Tel: +44 (0) 20 7332 5284
clintons-employees@zolfocooper.eu
clintons-creditors@zolfocooper.eu
clintons-landlords@zolfocooper.eu
clintons-saleofbusiness@zolfocooper.eu

For all other enquiries relating to Birthdays, please use the relevant contact details below:

Tel: +44 (0) 20 7332 5282
birthdays-employees@zolfocooper.eu
birthdays-creditors@zolfocooper.eu
birthdays-landlords@zolfocooper.eu
birthdays-saleofbusiness@zolfocooper.eu

About Zolfo Cooper

This press release and ‘Zolfo Cooper’ refer to Zolfo Cooper LLP. Zolfo Cooper LLP is a leading international provider of corporate advisory and restructuring services. Headquartered in London, with offices throughout the UK and affiliations in North America, the Caribbean, Continental Europe, Asia and Australasia, we have extensive experience of assisting companies and their stakeholders across a wide range of situations from complex cross-border cases through to mid-market engagements.

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