by Christopher Freeburn | June 7, 2012 3:32 pm
American Greetings (NYSE:AM) has purchased a struggling chain of cards stores in Britain. Under the deal, American Greetings will own the Clinton Cards brand in addition to up to 397 of the chain’s card stores, the Guardian reported.
The purchase will save the jobs of 4,500 Clinton employees.
Clinton Card was formerly one of American Greetings’ largest British customers for greeting cards. However, facing spiraling debts, Clinton went bankrupt last year. The chain once boasted 750 stores, but 350 have already been closed by the court-appointed administrator, with 3,000 jobs lost.
Stores not included in the American Greetings purchase will be liquidated along with other Clinton Card assets.
American Greetings UK greeting card operation already owns a number of brands, including Xpressions, Forget Me Not, Hanson White and Camden Graphics. Last month, the company acquired the senior secured debt of Clinton Card stores for $56 million, which provided the American Greetings with leverage when negotiating the purchase of Clinton’s remaining assets.
Shares of American Greetings moved up fractionally in late Thursday trading.
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