Double Deathwatch: Clinton Cards and Blacks in big trouble
Here are a couple of examples of the ‘high street meltdown’ that we mentioned a bit earlier on. Clinton Cards and Blacks Leisure are both in a bit of a pickle and to be honest, it’s hard to see either of them turning it around any time soon.
Clinton Cards have announced a loss of £10.7m in the past year, across their 596 self-named stores and 127 Birthdays stores. The previous year saw pre-tax profits of £11.97m. But the company are working hard to turn it around and have extended their credit facility with their banks until 2013. However, they have reportedly had to ask landlords for extra time to pay their shop rents as they struggle to cope with the losses.
Meanwhile, over at Blacks, things are looking even worse, with a £16m pre-tax loss reported in only six months (leading up to 27th August). Like-for-like sales have fallen by 7.2% to £81.1m and the company (who also own Millets) say that there is ‘a material uncertainty’ about Blacks’ ability to keep going without new financing.
As Twitter user @callummay said earlier, “could now be the winter of their discount tents?”