CARD retailer Clinton Cards has gone into administration.
The company, which has a shop in Whitley Bay’s Park View shopping centre, was informed on Tuesday that Barclays and Royal Bank of Scotland had sold its £35m loans to American Greetings, which has decided to enforce repayment.
Peter Saville, Simon Freakley and Anne O’Keefe, partners at Corporate Advisory and Restructuring specialists Zolfo Cooper, were appointed joint administrators over Clinton Cards Plc and its subsidiaries, including Birthdays Retail Limited, on Wednesday.
They were appointed after the group, which employs more than 8,000 people, experienced cash flow problems.
Mr Saville said: “Our first priority is to stabilise the business and assess its financial position.
“We will continue to trade the business whilst we undertake a full marketing exercise to find buyers for all or parts of the group.
“It is likely that a number of stores will need to be closed in order to make the business financially viable.
“However, Clinton Cards and Birthdays are very well-known brands.
“We are confident that it is an attractive proposition for a range of potential buyers and welcome expressions of interest from third parties.”