Trading in their company shares has been suspended with immediate effect.

Clintons revealed that Barclays and RBS had sold their loan facilities of around £35m to their supplier American Greetings. Though the two banks are waiving certain conditions of the loans, American Greetings are pushing for repayments that Clintons cannot meet.

They had hoped that American Greetings would extend the waivers but, as the company revealed in a statement, “However, having secured control of the debt, American Greetings immediately informed the board that it intended to enforce the loan against the company.

"The board has concluded that because it is unable to repay the loan, it has no option but to concur with American Greetings' proposal to place the company and its subsidiaries into administration."

Clinton Cards has been a high street staple since Don Lewin opened the first shop in Essex in 1968. However, in recent years the company has struggled in the recession, posting significant losses at the end of last year.

They have been trying to reverse their fortunes by closing some of their smaller shops, but today’s announcement suggests that this has not been enough.