Credit crunch fears grow for Clinton Cards

Clinton Cards is locked in refinancing talks with its banks, amid growing fears that Britain’s biggest greeting-card chain could become the latest high-street casualty of the credit crunch, The Times reported.

Shares in the group, which has more than 1,000 shops across the UK, have lost over 80% of their value in the past 12 months, closing down 7.7% on Friday at 10½p, valuing the business at just £21m, the newspaper said.

The group, which employs 9,000 people, has voluntarily decided to enter talks with its lenders to renegotiate its estimated £72m debt pile.

The debts – held with Barclays and Royal Bank of Scotland – comprise a £60m working-capital facility as well as a £12m loan facility which is due to be repaid in December, The Times added.

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Credit crunch fears grow for Clinton Cards