Profile: Zev Weiss, chief executive, American Greetings

Zev Weiss, chief executive of greetings card supplier American Greetings, might have quite a few apology cards to write in some people’s opinion, following his company’s role in the collapse of specialist retailer Clinton Cards.

Some took a dim view of the seemingly harsh and unexpected way American Greetings bought Clinton Cards’ £35m debt only to immediately demand repayment, pushing the retailer, present on many high streets, into administration last week.

It seems that the long-standing relationship between American Greetings and Clinton Cards turned sour as the retailer’s new chief executive, Darcy Willson-Rymer, sought to turn around the business following a strategic review. There has been speculation that American Greetings did not think the plans went far enough. 

American Greetings was the largest supplier to Clinton, whose 700-store business was American Greetings’ only UK retail outlet. And, by Weiss’s own admission, he wants Clinton to survive.

“We believe that properly managed, and with the appropriate capital structure, Clinton Cards could be both an important and profitable retailer in the speciality channel of distribution over the long term,” he said when last week’s transaction was disclosed.

Although American Greetings’ action prompted strong opinion in Britain, there is no doubt that Weiss would have made a decision informed by long experience of the greetings card industry.

A 100-year-old family firm, American Greetings was founded by Jacob Sapirstein in 1906, who then handed the business to his eldest son Irving Stone. His son-in-law Morry Weiss took the helm in 1987 and remains chairman after being succeeded by Zev in 2003. His brother Jeffrey Weiss is the chief operating officer.

Last month, American Greetings posted pre-tax income for the year to February 29 of $97.8m (£60.8m), down from $156m (£97.1m) the previous year, making a loss in the fourth quarter. 

Turnover increased 6% to $1.69bn (£1.05bn), of which $43m (£26.8m) was revenue from the acquisition of UK greetings card manufacturer Watermark.

Weiss said: “I am pleased with our overall performance. We remained focused on our product leadership strategy and many of our customers performed better than our expectations.”

But American Greetings does not expect 2013 to be very different. Revenues are anticipated to be “flat”.

Weiss’s company has not been immune to a changing world in which cards sent by post are sometimes seen as rather old-fashioned and diminishing in importance in an increasingly digital world – although that view is at odds with the fact that card sales in the UK have been rising. That shows that at least some of Clinton’s problems seem to have been of its own making.

Under Weiss, American Greetings has been adapting to a changing market. Personalisation of cards is possible through an online service. American Greetings has a smartphone app, allowing customers to send cards on the go, and ‘print at home’ cards are also offered. Weiss has brought celebrities on board, introducing in 2010 a range by American singer Taylor Swift.

It is hoped Clintons will find a buyer. Administrator Zolfo Cooper has already received “significant” interest. Rivals Card Factory and WHSmith along with private investment firm OpCapita are understood to be interested. 

But American Greetings itself may emerge as the owner of Clinton, which is likely to be restructured and operate fewer stores. In the end, Weiss may deserve a ‘thank you’ card if Clinton emerges in a fitter condition for the changing retail environment.