Clintons is set to shut 38 of its cards shops in efforts to avoid insolvency and total collapse.
According to the Evening Standard, an insolvency court approved a restructuring plan, meaning the company can rent the 38 unprofitable stores at risk of shutting and pay lower business rates.
The business plan, presented by FRP Advisory and Jones Day, means the retailer will only pay 8.6p for each pound owed to its landlords and local councils for its unprofitable shops.
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This means Clintons seems to be safe from collapse for at least the next year, the newspaper reports.
The company’s owners and main creditor have also agreed to provide a revolving loan facility, which looks to be sufficient to keep Clintons going for the next 12 months.
The restructuring plan claimed Clintons owners Jeff and Zev Weiss would only keep funding the retailer if it took on a new business plan with greater hopes of profitability.
However, the eradication of the 38 stores and much of their associated rent and rates liabilities could mean the card shop makes a recovery.
The card retailer has approximately 225 stores operating throughout the UK.