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Clintons, previously Clinton Cards, will be shutting the doors of one fifth of its stores, according to The Sunday Times.
Reports claim the move will stave off insolvency following a failed attempt to merge with Paperchase.
However, Paperchase has since fallen into administration, with Tesco acquiring the gift and stationery brand but not its stores or employees.
Clintons, the beloved retailer which sells cards, gift wrap and stationary items, will swap its debt for equity as it faces acute financial distress.
According to The Times, Clintons currently has 179 shops and wants to close 38 of its outlets. It employs around 1,400 people.
This is not the first time Clintons has faced financial difficulty; according to the BBC it had to be rescued in 2012 and a second time in 2019.
The Sunday Times stated that Clintons has already closed 156 stores after it was sold back to its owner through a fast-track insolvency process in December 2019.
Each time the company fell into administration it was purchased by companies owned by the Weiss family.
Clintons isn’t the only high-street retailer currently facing financial difficulty, with homeware and household goods hub Wilko filing a notice of intention to appoint administrators.
Customers are devastated, with the hashtag #savewilko taking Twitter by storm. Loyal shopper @xoxorobert_xoxo tweeted: “We Love you Wilko. I spent £30.15 in one of my Local Stores Today. Hopefully that’ll help you guys a bit more #SaveWilko.”
CEO Mark Jackson made a statement explaining that while Wilko has had a “significant level of interest”, it does not yet “have an offer that provides the necessary liquidity in the time we have available”.
However, with a “robust turnaround plan”, he is hopeful that they can “deliver a profitable wilko and maximise the significant opportunities that we know exist”.
Express.co.uk has contacted Clintons for comment.
