Gift card retailer Clinton Cards is calling in administrators after its American suppliers called in a £35m loan.
The company, which employs approximately 8000 people across the UK, is expected to appointed administrators after announcing its intention to do so on the London Stock Exchange on Wednesday.
There are currently 629 Clinton Cards in the UK, as well as 156 Birthdays shops, which the company also owns.
On Wednesday, Clinton Cards could not say how many of its branches were based in Scotland.
In a statement to the stock exchange, Clinton Cards said Barclays Bank plc and Royal Bank of Scotland plc had sold the company's loan facilities to American Greetings, its largest supplier. The outstanding indebtedness under such loan facilities is approximately £35m.
The statement continued said an interim management report scheduled to be published on May 10 showed trading "continued to be difficult" with like-for-like sales down by 3.5%.
Clinton Cards recorded a pre-tax loss of £3.7m in the 26 weeks to January 29, compared with a profit of £11.7m in the previous year, and warned that the second half of the year would be below expectations. Its shares have lost more than 80% of their value since the start of 2010.
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