Credit crunch fears grow for Clinton Cards
Card company in refinancing talks with its banks.
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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