The UK High Street greetings card company, Clinton Cards, who put it’s loss making subsidiary Birthdays into administration last month, are in talks with the administrators to buy back the profitable part of the business.
The Birthdays stores were purchased by Clinton Cards in December 2004 for £46.4million. The chain of 332 outlets failed to give Clinton Cards the return on investment that it hoped for and with the added problems of the financial crisis and subsequent cost cutting by consumers led to the chain being put into administration.
Now it appears that Clinton Cards are hoping to negotiate a deal to buy back 140 Birthdays stores that are in favourable and profitable locations. Birthdays employed 2,100 when it was put into administration, some of which would be saved if a deal is agreed.
Clinton Cards chairman, Don Lewin said in May that around half of the Birthdays stores were loss making and the group could no longer afford to support losses of £7million a year.
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