Clintons to shut 38 stores as part of restructuring plan
Under the plan, the landlords and local councils for 38 unprofitable sites will receive only 8.6p for every pound owed by Clintons, the Evening Standard reported
Clintons is reportedly set to close 38 stores in a bid to stave off its collapse for at least 12 months after a restructuring plan was approved by an insolvency court.
According to the Evening Standard, the plan allows the retailer to escape full payment of business rates and rent for the 38 shops that are set to close, saving thousands of jobs that would have otherwise been at risk.
Under the plan, the landlords and local councils for 38 unprofitable sites will receive only 8.6p for every pound owed by Clintons, the Evening Standard reported.
In addition, Jeff and Zev Weiss, its owners and main creditors, have reportedly agreed to provide a revolving loan facility that “should be enough to keep the chain alive for the next 12 months”.
Earlier this month, it was reported that Clintons could be set to close around a fifth of its stores in order to keep the company solvent.
According to reports that were first revealed by The Times, the retailer appointed restructuring experts FRP Advisory to help oversee a possible debt-for-equity swap.
The outlet also revealed that as part of the plans around 38 stores could be closed.
Clintons currently has a portfolio of 179 stores and employs over 1,400 people. It would also mark the third time since 2012 that the retailer has faced financial difficulty.
The retailer was acquired out of administration in 2019 after the Weiss family regained control of the business through a new entity.
Clintons has been contacted for comment.
