Card and gift retailer Clintons could be eyeing up a potential CVA, after the retailer wrote to landlords last week inviting them to a “series of town-hall meetings” to discuss “possible closures and rent cuts”.
According to Sky News, talks are set to start this week on what will happen to its 334 stores in the coming months. It comes after Clintons called in advisers from KPMG in September, as its owners explored a potential sale of the business.
Eddie Shepherd, CEO of AG Retail Cards, confirmed that it is in the process of inviting its landlord partners to a “series of informal meetings” to discuss the current financial position of the company and for them to consider “whether they want to work with us through a CVA process”.
Reports also suggest US-based parent company American Greetings is considering a sale just seven years after it acquired the company and forced it into administration.
The ‘Big Four’ accountancy firm was called in for a review of the company’s operations with sources cited by Sky News claiming that while a final decision has yet to be made, a potential sale is the most likely outcome. KPMG has also already contacted potential buyers.
The company which employs over 2500 people across the UK has closed 70 loss making stores over the past five years and it is believed that a sale could lead to further closures.
A spokesman for Clintons said at the time: “Every well-managed company undertakes a periodic and orderly review of strategic options, and this is no different. All Clintons staff are aware of the process and our focus is on the Christmas season and beyond.”