Retailer Clinton Cards collapses into administration

The group, which is the UK's biggest specialist cards retailer and operates 628 Clintons and 139 Birthdays stores, collapsed into administration after failing to find a buyer for all or parts of the business.

Clinton's plight was sealed after its banks - Barclays and taxpayer-backed Royal Bank of Scotland - sold the company's £35 million of loans to its biggest supplier.

But whereas the banks waived certain conditions, American Greetings told the company it planned to enforce the loan, pushing the company into an administration process.

American Greetings chief executive Zev Weiss said he hoped Clinton Cards could survive following a restructuring, adding that his company might ultimately become an owner of the business or continue to supply another buyer.

Clinton Cards' administrator Zolfo Cooper warned it was likely that "a number of stores" will need to be closed to make the business viable. He also confirmed the group have made losses of £130 million since 2004.

Retail expert Matthew Stych, who is research manager for Planet Retail said Clinton Cards' prices are too high and the firm's cards are not posh enough.

"Clinton Cards are offering fairly standard merchandise for what in today's market is premium prices. Those consumers who are looking for the cheaper offering are turning to supermarkets who are able to undercut them."

He added: "Consumers who are willing to pay a little bit more for something special will probably turn to something like Moonpig for a customised alternative."

The collapse of the card retailer is yet another recent high-profile high street casualty, with the group joining the likes of video games retailer Game Group, fashion chain Peacocks and outdoor specialist Blacks Leisure in administration.

The group which was founded in 1968 by current chairman Don Lewin will continue to trade as a going concern.