Clinton latest big-name casualty on UK's beleaguered high street By SCOTT REID Published on Wednesday 9 May 2012 20:53 THOUSANDS of jobs are under threat after greeting cards and gifts retailer Clinton Cards became the latest casualty on the UK high street. The move into administration followed the sale of £35 million of loans by Barclays and Royal Bank of Scotland to Clinton's biggest supplier, American Greetings. It is thought to have bought the debt to protect its supply position in the event of a sale of the retailer. Founded in 1968 with a single branch in Essex, Clinton operates 628 own-branded shops and 139 Birthdays stores, and employs some 8,000 staff - more than 4,500 of them full-time. North of the Border, the group runs 61 outlets. Joint administrators at restructuring specialist Zolfo Cooper said they would continue to trade the company while "exploring all possible options for its future including a sale of all or parts of the business." However, Peter Saville, joint administrator and partner at Zolfo, warned that it is likely that "a number of stores will need to be closed in order to make the business financially viable." Shares in Clinton Cards had been suspended earlier yesterday pending an announcement on the move into administration. The firm has a market value of just £14.5 million, with the shares shedding some 80 per cent of their value since the start of 2010. The group has been battling tough trading conditions and fierce competition from the big supermarkets, online specialists and cut-price rivals such as Card Factory. It warned on its outlook in March and yesterday admitted that trading for the 14 weeks of the second half to date had been "difficult," with like-for-like sales down by 3.5 per cent. Chief executive Darcy Willson-Rymer - a former Starbucks executive - had 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 division. The group said it was not in breach of any financial covenant or repayment obligation but the two banks had waived "technical breaches of default" related to management changes and supplier-related discussions. It had believed that American Greetings would extend the support to the company if it bought the debt, but it was told that the supplier would now enforce the conditions of the loan. Clinton's slide into administration is another blow to the retail sector after recent high-profile casualties, including outdoor specialist Blacks Leisure, video games seller Game Group and fashion chain Peacocks. Though many jobs were saved, the businesses were scaled back and there will be fears over the future of thousands of Clinton workers. "The supplier has pulled the rug, so it's by no means a usual sequence of events," noted independent retail expert Nick Bubb. The question really is why the supplier hasn't been more supportive. Saville added: "Our first priority is to stabilise the business and assess its financial position." Potential buyers could include American Greetings, private equity players, retail turnaround specialists and Clinton Cards" founder Don Lewin.