// 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.
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.