ABOUT 2,100 jobs are at risk – including scores in the North-East – after a greetings card business was placed in administration.
Clinton Cards, which owns the 332-store Birthdays chain, said it had taken the “difficult decision” that it could “no longer continue to provide funding to its loss-making subsidiary”.
The deterioration in the economy had added to Birthdays’ already struggling business and Clintons said 50 per cent of all the brand’s stores are now loss making.
Administrators Zolfo Cooper will “explore all options available to secure the future of the Birthdays’ business”
and it will continue to trade as normal for the time being.
There are 15 Birthdays stores in the region – Whitby, York, Catterick, Bishop Auckland, Chester-le-Street, Middlesbrough, Stockton, Gateshead, Jarrow, Newcastle, North Shields, South Shields, Wallsend and Washington.
Clinton Cards stores, which employ about 6,200 staff in 692 shops, are unaffected by the move and will continue to trade as normal.
The group’s chairman, Don Lewin, said Clintons could not sustain supporting Birthdays’ losses of about £7m a year.
Clinton Cards bought Birthdays in December 2004, but the chain has not been able to shake off its troubles. While sales performance has improved, the parent company still had to provide finance.
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