Editor Lewis Eckett
leader
For the third month in a row, the Hallmark will have too much to worry about as they
F
subject of the Leader is Clinton renegotiate their supply deals with the main Clinton So
Cards. brand. Smaller card companies may not be in the
It’s hardly a surprise is it? same position particularly if they only supplied Clinton
Even in the lifespan of Don Birthdays and will have to stomach the loss of
Lewin’s retail empire, there surely haven’t been business as well as the loss of stock.
was
many events more dramatic than those of the last In all this, one question still remains: What will
few weeks, which saw Clinton putting the Birthdays Clinton do next?
always
chain into administration and then buy back 196 of Barry Hartog has also explained that Clinton
the best performing stores for next to nothing. intends to pursue a twin-brand strategy and will keep
going
The seeds of this scenario must surely have been the Birthdays fascia on the high street. That’s all fine
sown back when Clinton was negotiating its banking and dandy but if Clinton couldn’t make Birthdays
to be
and loan arrangements. The Birthdays fiasco would work in the first place, why will it fare any better
the lead buyer
have stood out like a sore thumb on the balance going forward?
sheet, forcing the decision to do something decisive Clinton cards is being squeezed between the rise
and the speed
with the loss-making business. of the supermarkets and discount retailers like Card
Clinton’s commercial director, Barry Hartog is Factory on one hand and slowing consumer demand
at which the
on record as saying that a pre-pack administration on the other. Irrespective of these twin pressures,
was considered but in the end it was deemed Clinton needs to refresh its retail offer if it is to
deal was done
“inappropriate” and “unfair”. reclaim the greetings card high ground. The stores
The alternative was the handing over of the are neither cheap ‘n cheerful nor top end and sit
suggests a pre-
business to administrators, Zolfo Cooper, for them to uncomfortably in the middle. The fascia is dated and
seek buyers for the business as a going concern. there is little that is innovative or startling about the
pack in all but
In hindsight, finding a purchaser for the Birthdays product offer.
chain was always going to be tricky. First of all, if
name.
Clinton could never make a profit from the brand Those of you with sharp eyes will recognise a
why would anyone else fare any better? Secondly different look for GT this month.
and perhaps more pertinently, any monies paid for Yes, we are introducing a bold, new look to our
all or parts of the chain would be used to repay pages that we hope you’ll find both refreshing and
Birthday’s principal creditor – Clinton Cards. cleaner to read. As the industry’s biggest circulation
Not a situation rival card retailers would be happy business magazine we wanted to adopt a business-
with. like look that would also show off the creativity of
So Clinton was always going to be the lead buyer the greetings industry. We hope you like it. We will
and the speed at which the deal was done suggests a be making key additions to GT in the coming months
pre-pack in all but name. to give you an even better service.
In taking back 196 of the best-performing stores
free of debt and under new lease agreements, Clinton *Do you agree/disagree? Send your views
has rid itself of a loss-making business, cut it’s to: lewis@lemapublishing.co.uk
losses and boosted its bottom line. The share price
has increased dramatically since the turn of the year
too with the City and shareholders putting out the
Editor’s favourite
bunting for the death and rebirth of Birthdays.
It’s my wedding anniversary this month
It’s hard not to agree with the sheer chutzpah of
and although I’m not the sort of hus-
the dealmaking involved here.
band who ever forgets, it can be hard
In the short term it boosts the balance sheet
to fi nd the right thing after you’ve been
because the 196 stores will be returning under
married a fair few years.
improved rental agreements and were already
This year I picked up this cheeky
profitable anyway. In the longer term, the refreshed
little number from online retailer:
estate should be able to pay down the millions lost
Notorious Kitsch. It’s a US design
by Birthdays at a much quicker rate.
from Brooklyn-based Anne Taintor
In contrast however staff and landlords involved
Inc and its retro-humorous theme
in the discarded shops an at Birthdays’ Bury HQ
really appealed to me. Whether
all face an uncertain future. Already there are dark
my wife will appreciate its faintly-
mutterings from disaffected staff at their treatment
ironic tone is another matter
from Clinton and the administrators. There is a very
entirely, but I think she’ll be OK
real human cost here for those facing loss of their
if it’s backed up by the requisite
jobs and no redundancy payments to fall back on.
chocolates and champagne!
Suppliers too will have suffered, although
it is unlikely that the likes of UK Greetings or
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