Greetings Today magazine, giving you the bigger picture

Town halls could lose millions

Clinton’s collapse left business rates unpaid

TOWN halls stand to lose millions in unpaid business rates as a result of the collapse of Clinton Cards.

Around 300 councils are believed to be owed money, mainly in rates on the group’s shops.
Reports claim Glasgow City Council alone is owed a total of £668,865 from the 10 Clinton’s and Birthdays stores across the area, five of which have been taken over by American Greetings, and three have been closed by the administrators.
Clintons is believed to have owed £88million to unsecured creditors when the group collapsed with Birthdays owing a further £25m, and current estimates say these debts will be repaid at just 1p in the pound.
The £15m owed to American Greetings’ was the biggest single unsecured amount and precipitated their purchase of Clinton’s £35m secured debt to the banks which AG then called in, forcing the Clinton group into administration in May.
Last month AG took control of 397 stores and around 4,500 staff by bidding around £24m of the debt in an auction of the assets that constituted a viable business.
Of the 330 shops left for administrators Zolfo Cooper to deal with, just 101 were left trading after last Friday (July 6).
The administrators say they have tried to negotiate rent-free deals to keep stores open and a number of landlords are believed to have agreed.

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