Clintons offers £2m compensation for landlords ahead of CVA vote

2417
Clintons offers £2m compensation for landlords ahead of CVA vote
Clintons' CVA is due for a creditors vote as early as next week.
// Clintons’ owners offer £2m compensation to landlords ahead of the CVA vote
// Clintons’ CVA includes plans to shut down 1/5 of its store estate and seek rent reductions on the rest
// The compensation offer would be for landlords affected by the closures

Clintons is hoping to win over landlords ahead of a crucial vote on its CVA by reportedly offering them £2 million in compensation.

The greeting cards retailer recently launched its CVA, which includes plans to shut down 66 stores – around one fifth of its store estate – and seek rent cuts on most of the others.

According to The Telegraph, Clintons’ owners are putting aside £2 million to compensate the landlords that will be affected the the stores closures.


READ MORE:


These landlords include shopping centre giants Intu, Hammerson and Landsec – which share a total 27 Clintons stores.

The Weiss family has also has agreed to write off a £60 million intercompany loan.

Clintons has not commented on the reports.

Clintons’ CVA is due for a creditors vote as early as next week.

In 2018, the gifts and cards retailer made sales of £188 million, down from £201 million the year before.

Its losses narrowed from £19.4 million to £14.2 million in 2018.

Restructuring documents recently revealed that an estimated 90 stores are currently loss-making with sales forecast to decline.

Click here to sign up to Retail Gazette‘s free daily email newsletter