Struggling high-street retailer Clinton Cards is reviewing its operations in a bid to improve its store portfolio and boost sales.
The review will be led by former Starbucks UK managing director Darcy Willson-Rymer, who joined the retailer in July.
The announcement of the review came as Clinton published its results for the year ended 31 July, which saw the group fall into the red.
The group posted a pre-tax loss of £10.7m for the period, compared with a profit of £12m in 2010. Turnover fell from £457m last year to £432m, despite a receipt of £2m in contributions from landlords in the form of reverse premiums and/or extended rent-free periods.
Clintons said: “There is a shared recognition across the group of the need to respond to the challenges of having a visible high street presence and a resilient business model if we are to return to a period of sustained performance…We start this new and exciting phase with a very strong brand and an improving portfolio of stores and products.
“While the current macro-economic environment remains challenging, the team believes that this review and subsequent actions will benefit the group’s future performance.”
Clintons shut 34 stores during the period under review, including 20 that operate under its Birthdays brand.
The chain has managed to agree an extension to its revolving credit facility with Barclays and Royal Bank of Scotland until July 2012. The maximum available draw down will be £55m, which Clintons expects to fully utilise only for a short period in October 2012.
Chairman Don Lewin said: “Clinton Cards has come through a challenging year, a period in which a number of iconic retailers have suffered and struggled against ongoing economic uncertainty. I am therefore pleased to report that the group has agreed an extension to the revolving credit facility with its joint lenders until July 2013.”
He added: “My main focus will be to continue to work with the board to transform the business so that the foundations are established for realising commercial success, enabling Clintons to prosper in a rapidly changing retail landscape.”
Trading since the end of the year continues to suffer, with like-for-like sales for the 12 weeks to 23 October 1.5% lower than the same period last year.
james.a.kenny@estatesgazette.com
