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CARDSHARP
More Questions
Than Answers
Well, Christmas has come and gone with mixed results, reflects Cardsharp. Going by the reports shared on PG Buzz, the majority of independent and multiple retailers reported decent Christmas card sales. Admittedly, expectations were not particularly high, and invariably those who suffered are less likely to shout it from the rooftops, but there was at least some jingle in the tills. Cardsharp turns his attentions to the early Christmas ‘present’ of the Clintons’ pre-pack as well as some ‘end of an era’ trade happenings. With footfall said to be disappointing everyone is dreading early year retail casualties, whether liquidations, administrations or CVAs. CVAs are considered by many to be the least worst option, but as Cardsharp notes, there have been 23 major retail CVAs since 2016 and 13 of those have subsequently failed. In fact, some commentators have claimed that CVAs and their ilk just help prolong the agony of ‘zombie’ companies. They argue, that the ‘creative destruction’, so beloved by the economist Schumpeter, is being blocked artificially by these methods and that they actually prevent a sharper fall in retail rents, which would allow hungry innovative players into the retail market as well as ease the financial burden of those trading in the climate of a lesser retail footfall. Which brings us back to last month’s topic, Clintons or Clinton Cards as it used to be known. Clintons of course did not
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PROGRESSIVE GREETINGS WORLDWIDE
undergo a CVA in the end, but instead a pre-pack administrative receivership. Cardsharp was hoping by the time he came to writing this month’s column he would be able to spread a little light on Clintons’ business failure and immediate resuscitation back in December. But invariably with Clintons there are more questions than
answers. Never has the word ‘opaque’ been more appropriate to a retail chain. One thing that puzzles Cardsharp was the timing of the Clintons’ administration back in December. Traditionally, multiple retailers go pop after Christmas. That is when cash levels are at their highest and stock levels at their lowest. And of course this is when the quarterly rent bill is due. Showing his age, going back to the 1990s, Athena went down the day after Boxing Day, as did Woolworths in 2008. HMV struggled on to January in 2013, while Toys R Us dragged it out until February in 2018. But Cardsharp cannot ever recall a retailer going into administrative receivership in December before Christmas. Cardsharp was also bemused to see, according to the Sunday Times, that the amount owed to unsecured creditors was only £9.5 million. Admittedly ‘only’ is no consolation if you are one of the poor unfortunates that are owed or have lost money, but in corporate terms it is Top: Cardsharp looks into his crystal ball to reveal Clintons’ (possible) future. (Photo by Gantas Vai iul nas from Pexels). Left: Clintons unusually under went a CVA just before Christmas.