Posted by Barry Silverstein on May 9, 2012 05:01 PM
American Greetings, the second largest greeting card company in the U.S. behind Hallmark, has bought the debts of struggling Clinton Cards, the largest card retailer in the UK, in an action akin to a hostile corporate takeover. The unusual move essentially puts American Greetings in control of Clinton's fate and is expected to force the retailer into administration, the British form of bankruptcy.
American Greetings is the biggest supplier to Clinton Cards, which operates 628 Clinton Cards stores and 139 "Birthdays" outlets throughout the UK, employing over 8,000 people, whose jobs could now be at risk. Clinton was unable to repay a 35 million pound loan (more than $56 million) to its banks so the firm "had no option but to agree to a proposal by the new owner of the debt," reports Reuters.
The American invasion clearly took the British retailer and many industry observers by surprise.Continue reading...