Clinton Cards enters administration

Retailer Clinton Cards is set to become the latest casualty on the British high street after its debt was sold by lenders including state-owned RBS and subsequently called in, putting thousands of jobs at risk.

Clinton Cards, said it had no option but to agree to a proposal by the new owner of the debt, its biggest supplier American Greetings, that it should be placed in administration as it could not repay a £35m loan.

The company, which employs over 8,000 people in the UK, warned on its outlook in March, amid tough trading conditions, and as it battles intense competition from supermarkets and the Internet.

Analysts said the expected administration was a surprise, however, as the supplier had enforced the loan.

“The supplier has pulled the rug, so it’s by no means a usual sequence of events. The question really is why the supplier hasn’t been more supportive,” said independent retail analyst Nick Bubb.