SCORES of workers at Birthdays stores across the North-East are expected to lose their jobs, despite a deal to save part of the firm.
Parent company Clinton Cards yesterday announced it had bought back 196 of the 332 Birthdays stores it placed into administration a month ago.
But the remaining 136 stores are to close, administrators confirmed yesterday.
Of the 15 Birthdays stores in the region, those in Bishop Auckland, Catterick, Chesterle- Street, Jarrow, Newcastle Haymarket, Middlesbrough’s Hill Street, Selby, North Yorkshire, and Wallsend, North Tyneside, are to close, it was confirmed yesterday.
Together, they employ scores of people.
The remaining stores in Whitby, York, Stockton, Gateshead, North Shields, South Shields and Washington will remain open.
Administrators Zolfo Cooper said: “There are 136 stores in the UK that have closed already or will be closing, employing somewhere in the region of 750 staff.”
But Clinton Cards said 1,450 jobs would be secured as a result of the deal, and the remaining stores will continue to be operated under the Birthdays brand, which has also been acquired.
Clinton Cards chairman Don Lewin said: “We are very pleased to be able to report the successful purchase of a large proportion of the Birthdays stores, thereby ensuring employment for 1,450 people.”
The deterioration in the economy added to Birthdays’ already struggling business and last month Clintons said 50 per cent of the brand’s stores were loss making.
Clinton Cards is to pay administrators £3.5m for the stores, although £3.25m will be deducted from the amount owed to it by Birthdays.
The 196 stores saved had sales of £74m and had a gross asset value of about £26m as of last August.
Birthdays was founded in 1979 and was once owned by Sir Tom Hunter’s West Coast Capital vehicle.
It was bought by Clinton for £46m in 2004.
Former Middlesbrough manager Bryan Robson was once a shareholder and director at Birthdays.
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