The future looks bleak for greeting cards retailer Clintons as it grapples with financial difficulties, with reports suggesting that the company may have to close nearly a quarter of its shops.
Staff at Clintons which has stores in Lincoln, Manchester, Stamford, Birmingham, Skegness, and Boston have woken up this morning knowing their jobs could be at risk.
Clintons which have already closed some stores which includes in Grimsby, is struggling to stay afloat, just like Wilko.
This would mark the third time in just over a decade that the retailer has faced such challenges. Clintons is considering shutting down 40 of its 179 outlets, putting approximately 1,400 employees at risk.
Clintons, a prominent player on the UK high street since 1968, finds itself on the brink of insolvency due to its inability to strike a viable deal. Documents reveal that the store closure plan is an attempt to avoid insolvency and enable the business to continue operating. If Clintons fails to secure an agreement, it will have no choice but to commence formal insolvency proceedings.
This is not the first time Clintons has faced such dire circumstances. In 2019, the retailer announced the urgent closure of 66 branches to avoid administration. However, the company was saved by Esquire Retail Limited through a pre-pack administration deal.
Although Clintons managed to survive, it still had to let go of some staff members and close a number of stores. By January last year, the retailer had 238 stores and around 2,000 employees.
Clintons’ struggle is part of a larger crisis facing the UK high street. Another retail giant, Wilko, is also on the verge of entering administration, putting its 400 stores and 12,000 employees at risk.
The household and garden firm recently filed a Notice of Intention (NOI) to appoint administrators, just weeks after its owners considered selling a controlling stake.
Wilko has confirmed that it will continue discussions with interested parties to secure a transaction that preserves the business and maximizes potential opportunities. However, without the certainty of a recapitalization within the necessary timeframe, the company has been left with no choice but to take action
The potential closure of Clintons and Wilko stores not only affects the companies themselves but also has significant implications for their employees and local communities. If Clintons were to close 40 shops, approximately 1,400 employees would face the risk of job losses. Similarly, Wilko’s administration would put 12,000 jobs at stake.
Both retailers have a long-standing presence on UK high streets, serving local communities for decades. Clintons, in particular, has been a key player since 1968. The closure of these stores would not only result in a loss of employment but also impact the availability of essential products and services for local consumers.
As the high street crisis deepens, retailers like Clintons and Wilko are actively seeking solutions to secure their future. Clintons is in urgent need of a deal to avoid insolvency and ensure its survival as a going concern. Meanwhile, Wilko continues to engage in discussions with interested parties to explore potential rescue options.
Both retailers are aware of the challenges they face and are actively seeking ways to navigate the uncertain terrain. Clintons, having experienced financial difficulties in the past, is no stranger to the need for restructuring and cost-saving measures. Wilko, with its significant turnover and strong presence on UK high streets, is leveraging its robust turnaround plan to create a profitable future.
