26th May 09
Birthdays chain placed in administration
by Paul Russell
www.birthdays.co.uk
The UK greeting card chain Birthdays has been placed into administration by Clinton Cards, its parent company, meaning that over 2,000 employees are at risk of losing their jobs across 332 stores.
Turnaround specialist Zolfo Cooper was been appointed administrator of the loss-making retailer.
Clinton Cards, which will continue normal trading, acquired Birthdays for £46.4 million in 2004. The failure of the greeting card chain is not likely to surprise industry observers, as the company has reportedly experienced a significant drop in sales over several months.
There was recent speculation that Birthdays was about to enter a Company Voluntary Arrangement (CVA) – an alternative to administration.
Declining business at Birthdays, which sells cards, gifts and gift wrap, is seen to be the result of the credit crunch. Overall, the chain employs approximately 2,200 staff at its head office, in stores and in distribution roles.
Clinton Cards released a statement that said: “Following deterioration in the wider economy since last autumn, approximately 50pc of all Birthdays’ stories are now loss making meaning that a solvent restructuring of the business is not considered to be a viable solution.”
The Irish subsidiary of Birthdays was not placed into administration, and has said that it will continue normal trading.
Thanks to www.telegraph.co.uk for the above quotes, for more information on this article please visit their website.
www.birthdays.co.uk
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