Restructuring is seen as on the cards at Clinton

Clinton Cards could start a major restructuring at its Birthdays chain over the coming weeks if it cannot sell its discount card operation.

The listed card group, which also has 630 Clintons stores, put its Birthdays business up for sale this month by hiring a restructuring team at Ernst & Young.

But industry sources expect few, if any third parties, to be interested in buying the 141-store chain, which has not made a profit since Clinton Cards acquired it for £50m in 2004.

While Birthdays has been struggling for years, the group's core Clintons chain has performed better recently and posted a small rise in Christmas sales.

It is unclear if Card Factory, the Wakefield-based discount card retailer, has any desire to buy Birthdays. This is largely because Card Factory – which was sold to the private equity firm Charterhouse Capital Partners in a deal worth £350m in April 2010 – has opened many of its 596 shops near to those owned by its listed rival over recent years. But the private equity-owned chain may seek to snap up some stores if Clinton Cards is unable to sell Birthdays and has to offload large numbers of stores as part of a formal restructuring. Birthdays made a loss of £8.6m in 2010-11.

The discount chain is a key part of the strategic review being carried out by Darcy Willson-Rymer, the former head of Starbucks UK and Ireland, who became chief executive of Clinton Cards in October.

A spokesman said: "The strategic review of the business is on track for conclusion in April. We are looking at every part of the group, including Birthdays, and we are reviewing all options. Any speculation about the future of Birthdays remains premature." The group made a loss of £10.7m for the year to 31 July.

Clinton Cards has also appointed advisers from Rothschild to help with its strategy. Rothschild is thought to be providing debt advisory work. E&Y and Rothschild declined to comment.

Elsewhere on the high street, Game Group, the video games specialist with nearly 1,300 shops globally, faces a battle to safeguard its future ahead of its second-quarter rent day on 25 March. Game, which has 610 UK shops, received a possible lifeline from the distressed investment firm Opcapita last week.

Opcapita, which acquired the electricals chain Comet for a token £2 last month, has offered to acquire Game's more than £100m of debt from its lenders. But there was speculation over the weekend that the banks may have already turned their backs on the proposal.

Opcapita has also offered pay off all the outstanding bills of the games retailer's suppliers. However, any rescue deal for the embattled retailer is likely to involve a substantial number of Game's UK stores eventually closing.