Clintons returns to profit under new owner

Clintons has returned to profit under its new owner following a store closure programme.

The card and gifting retailer swung to a pre-tax profit of £38m in the year to June 29, up from a loss of £5.3m the previous year. This was despite a 14% drop in sales, from £96.5m to £82.6m.

During the period, Clintons shuttered more than 38 unprofitable stores after an insolvency court approved a restructuring plan to avoid a total collapse. It finished the year with 163 stores nationwide.

The retailer also axed over 300 jobs, as headcount fell from 1,757 to 1,415.

Clintons was acquired by Cardzone owner Pillarbox Designs in March 2024 and the owner said in a statement, there was a “significant impact” on profitability levels due to the restructuring plan that “removed certain liabilities and reduced the level of business rates paid to March 2024”.

“The company has continued to close loss-making stores and the portfolio of retail stores is now down to approximately 170 stores. Sales growth continues to be a challenge and the location of stores remains key to achieving this.

“The high street continues to be unpredictable and the company is seeing reduced footfall in the stores year on year. The company continues to monitor the performance of the existing estate and to close the poor performing stores, which, whilst impacting on turnover, should improve profitability moving forwards.”

New Clintons boss James Taylor told Retail Gazette last year that the high street chain was in a “worse state than expected” when it snapped up the business.

The Cardzone Group trading director said: “We weren’t optimistic as to what we would find or the condition the business would be in, but we underestimated the task to turn it around.”

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