EMBATTLED Clinton Cards has become the latest big name to fall into administration, putting 8000 jobs under threat.
The greeting cards shop, which runs many stores in Scotland, has been struggling with enormous debts and tough times on the high street.
It has also been losing the battle to keep its traditional share of the market in the face of competition from e-cards, social media and supermarkets.
The retailer, which operates 628 Clintons and 139 Birthdays stores, requested its shares be suspended on the London Stock Exchange prior to going into administration yesterday. The move comes after its banks –Barclays and Royal Bank of Scotland – sold the company's £35 million of loans to its biggest supplier, American Greetings.
But while the banks waived certain loan conditions, American Greetings decided to call in the debts.
Clinton Cards said in a statement: "Having secured control of the debt, American Greetings immediately informed the board it intended to enforce the loan against the company.
"The board has concluded that, because it is unable to repay the loan, it has no option but to concur with American Greetings' proposal to place the company and its subsidiaries into administration."
It is understood that administrators will continue to run the stores while seeking a buyer for the business, but a large number of outlets could be closed.
It is another blow to Britain's high streets after recent high-profile casualties – including video games retailer Game Group, fashion chain Peacocks and furniture store Habitat.
Clintons has suffered dire trading in recent months amid stiff competition from supermarkets and online retailers such as Funky Pigeon and Moonpig, which sell personalised cards.
The business has been slow to adapt to a changing market which has seen many people sending electronic greetings or using sites such as Facebook and Twitter to pass on birthday messages. It only launched its own e-card service last year, but this failed to stem the tide.
According to reports, it recorded a pre-tax loss of £3.7m in the 26 weeks to January 29, compared with a profit of £11.7m in the previous year, and had warned the second half of the year would be below expectations. Its shares have lost more than 80% of their value since the start of 2010.
Yesterday, it revealed more poor trading for the 14 weeks since January 29, with same-store sales down 3.5%.
Maureen Hinton at Verdict, a retail analyst, said that attempts to modernise the business were "too little, too late".
She added: "They were a latecomer to the party. Most people think of Moonpig when it comes to e-cards. It's like HMV, which is fighting Amazon."
The chain was founded in 1968 when Don Lewin opened the first store in Epping in Essex, naming it after his seven-year-old son Clinton.
In 1988 it had 77 stores when it floated on the stock market. Its store numbers were swelled by numerous acquisitions including Hallmark Cards and the Birthdays Group, which had 170 stores, in 2004.
A familiar landmark on many high streets and shopping centres, Clintons carved out a niche selling cards for every occasion, from new baby greetings to condolences for the recently bereaved.
Chief executive Darcy Willson-Rymer, formerly of the coffee-house chain Starbucks, has been carrying out a strategic review over the past six months, which is understood to have included a fruitless search for a buyer for all of the business or its Birthdays chain.
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