Clinton Cards buys 196 stores from Birthdays
Friday 26 June 2009
Clinton Cards is to buy 196 stores from Birthdays, the loss-making subsidiary it put into administration last month. The £3.5m deal is expected to save almost 1,500 jobs.
The group said yesterday that £3.25m of the total sum will be used to reduce the debt Birthdays owed when it collapsed. The 196 stores, which will still be operated under the Birthdays brand, were profitable to the tune of £2.7m in the year to AugustClintons chairman, Don Lewin commented: "We are very pleased to be able to report the successful purchase of a large proportion of the Birthdays stores thereby ensuring employment for 1,450 people." The group has also renegotiated many of the rents agreements with landlords on the stores.
David Stoddart, analyst at Altium Securities, said: "The potential uplift in profit should be more than enough to ensure the deal is earnings enhancing".
Clintons has suffered in the current climate, as well as the challenge from supermarkets muscling into the gift card space. Birthdays performed particularly poorly, and in May, Clintons said the losses were unsustainable and called in specialist administrator Zolfo Cooper.
Mr Lewin said: "In the current environment, the group cannot sustain supporting losses of approximately £7m a year at Birthdays with limited opportunity to improve on that performance in the foreseeable future."
- 1 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 3 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
- 4 John Travolta addresses former pilot's gay romance allegations publicly for the first time
- 5 Kanye West stops concert after two fans don't stand up - doesn't realise one is in wheelchair and the other disabled
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Scottish independence: Police will be on high alert on Friday whatever the result
John Travolta addresses former pilot's gay romance allegations publicly for the first time
QS university world rankings: Imperial College London leapfrogs Oxford to join Cambridge as best British university
Scottish independence exclusive: Millions of banknotes sent to Scotland in case Yes vote sparks run on ATMs
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...