Clinton Cards Shares Soar
Clinton Cards shares soar on the back of news that the loss-making Birthdays chain is to go into administration. Clinton Cards bought the Birthdays chain in 2004 for £46.4m.
Clinton Cards shares rose 37% yesterday. Good news for shareholders, not so good for the 2000+ Birthdays employees? Around half of the 300+ Birthdays stores remain profitable and no closures or job-losses have been announced.
"Clinton Cards chairman Don Lewin said: “Everyone at Birthdays has worked tirelessly to try and turn the business around. Nevertheless in the current environment the group cannot sustain supporting losses of approximately £7m a year at Birthdays.
Clinton Cards shares rose 37% yesterday. Good news for shareholders, not so good for the 2000+ Birthdays employees? Around half of the 300+ Birthdays stores remain profitable and no closures or job-losses have been announced.
"Clinton Cards chairman Don Lewin said: “Everyone at Birthdays has worked tirelessly to try and turn the business around. Nevertheless in the current environment the group cannot sustain supporting losses of approximately £7m a year at Birthdays.
“It is my genuine belief that there is a significant element of the Birthdays’ business that will have a profitable and sustainable future.
“It is sad that we have reached this position but this action will be earnings enhancing for Clinton and I have every confidence in the future of our business.”
Clinton also gave a trading update, revealing that like-for-likes across the group remained flat in the 13 week period to May 3, 2009. There was a 0.6 per cent decline at the Clinton stores and a 2.3 per cent increase at Birthdays".
Source: Retail Week
Labels: Birthdays, Clinton Cards
posted by Cool Cards at
07:04
2 Comments:
Another retailer who took the gamble with high rent, small floor space and a saturated market. To continue to trade with competition from the major supermarkets, moonpig entering the UK scene and the local party stores is a big ask. The party business is akin to florist industry where a strong network of sole-traders and small businesses are supported well by major suppliers picking up the baton of good customer service and are defiant in being out-placed my low waged national chains. The web has taken an important part where the small businesses have networked together on http://www.balloonprofessional.co.uk. (a bit like inter-flora of the balloon and world) to find a independent local balloon and party supplier. While many national retailers have ousted the local trader, the local party shop are determined not to be beaten. With birthdays going into administration the war of the party industry isn't quite over as matalan are now attempting to establish their new party shop M-party.
Hi, it is very interesting reading your blogs. I hope Clintion cards get back on track, as I think they are good quality, and far better than moonpig (can I say things like this?)
I am not sure why you do not supply trade, but I will periodically return to your blog and site to see if it ever changes (thats after my site gets going and needs cards.)
I have put a link, but I fully understand if you do not publish comments or link
Have a nice day, best wishes.
Louise Cards hand written and posted
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