In an effort to salvage its financial stability, the renowned greeting cards retailer Clintons has announced plans to shut down approximately 20% of its shops. Reports suggest that if a suitable deal cannot be reached, the company may face insolvency, marking the third time in just 11 years that Clintons has encountered severe financial difficulties. The retailer was previously rescued from administration in 2012 and 2019, but its current situation remains precarious.

Clintons, which currently operates 179 shops and employs around 1,400 people, has appointed restructuring experts FRP Advisory. However, both Clintons and FRP Advisory have declined to comment on the situation.

According to The Times, Clintons aims to close 38 of its outlets as part of its cost-saving measures. The move comes as the company struggles to cope with ongoing challenges in the retail sector, further exacerbated by the economic impact of the pandemic.

The news of Clintons’ potential downsizing follows another concerning development in the High Street landscape. Last week, homewares company Wilko revealed that it is on the brink of collapse, putting 12,000 jobs at risk. The retailer has filed a “notice of intention” (NOI) to appoint administrators, signalling its desperate financial situation.

Wilko’s CEO, Mark Jackson, expressed the company’s efforts to secure funding for a turnaround plan but lamented the inability to execute an indicative offer in the required timelines. The company’s uncertain future has raised concerns about the potential loss of a significant number of jobs in the retail sector.

For Clintons, the current challenges represent a stark contrast to its once-booming success. At its peak, the company boasted nearly 800 shops and employed 8,000 staff. However, the financial struggles that began in 2012 led to the closure of 350 shops and the loss of nearly 3,000 jobs. American Greetings, a supplier owned by the US-based Weiss family, stepped in to rescue the retailer from administration at that time.

The Weiss family’s intervention saved Clintons once again in 2019, but further store closures and job cuts followed. The retailer’s history is rooted in the vision of its founder, Don Lewin, the son of an East End chimneysweep, who founded the company in 1968. His entrepreneurship made him a multi-millionaire, earned him an OBE, and inspired his autobiography, “Think of a Card.”