Clinton Cards shares rose 37% yesterday. Good news for shareholders, not so good for the 2000+ Birthdays employees? Around half of the 300+ Birthdays stores remain profitable and no closures or job-losses have been announced.
"Clinton Cards chairman Don Lewin said: “Everyone at Birthdays has worked tirelessly to try and turn the business around. Nevertheless in the current environment the group cannot sustain supporting losses of approximately £7m a year at Birthdays.
“It is my genuine belief that there is a significant element of the Birthdays’ business that will have a profitable and sustainable future.
“It is sad that we have reached this position but this action will be earnings enhancing for Clinton and I have every confidence in the future of our business.”
Clinton also gave a trading update, revealing that like-for-likes across the group remained flat in the 13 week period to May 3, 2009. There was a 0.6 per cent decline at the Clinton stores and a 2.3 per cent increase at Birthdays".
Source: Retail Week