Britain's Clinton Cards sold by administrator to American Greetings
LONDON Majority of Britain's Clinton Cards and Birthdays stores have been sold by the administrator to Ohio-based American Greetings, which was Clinton Card's biggest supplier, in a 24 million pounds deal, and in the process saved around 4,500 jobs.
Under the deal American Greetings will be acquiring 397 stores across Britain besides the brands and other assets of the retailers which collapsed into administration a month back.
Zolfo Cooper, the administrator, has already announced the closure of around 350 stores, costing the jobs of nearly 3,000 full- and part-time staff.
American Greetings placed itself in pole position to buy the chain after it snapped up Clinton's 35 million pounds bank debt, making it a preferential creditor and giving it a strong position in sale talks.
The American company's operations in the UK include brands like Camden Graphics, Hanson White, Forget Me Not and Xpressions besides supplies outlets including major supermarkets.
The final number of stores acquired will be dependent on negotiations with landlords at each location.
American Card's chief executive Zev Weiss is optimistic that "with the appropriate capital structure, Clinton Cards can be both an important and profitable retailer in the speciality channel of distribution over the long term."
Zolfo Cooper partner Peter Saville said there was a strong underlying business, with the company paying the price for "excessively ambitious" expansion plans and the impact of intense competition.
The stores being sold made 212 million pounds sales last year, out of a total of 360 million pounds across the two brands being acquired by the US company, which dates back more than 100 years and generates annual revenues of $1.7 billion US dollars (1.1 billion pounds) from brands including Carlton Cards, Gibson and Papyrus.
Its UK operations began in the early 1980s with the purchase of long-established industry names - Rust Craft, Celebration Arts Group and Andrew Valentine. They were merged to form one company, Carlton Cards, and after more acquisitions in the 1990s the business took the UK Greetings name.
In March last year, it acquired Corby-based card and gift wrap publisher Watermark, which employed 250 people with annual revenues of around 26 million pounds.
Source: Britain News.Net
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