Threat to 600 jobs as axe falls on butcher Crawshaw
Meat retailer Crawshaw is to call in administrators after failing to raise emergency funding to stay afloat, putting 600 jobs at risk.
The group, which operates from 42 high street stores and 12 factory outlets including one in West Bromwich, said discussions with investors to raise cash had failed and that it does not have sufficient resources to carry out a restructuring.
As a result, Crawshaw's board has taken the decision to appoint administrators with the purpose of seeking buyers for the group's business and assets on a going concern basis.
The latest crisis follows the shock closure of two local stores earlier this year. It closed its branches in Market Hall Street, Cannock, and in Bilston in January just after reporting record sales over Christmas. The two stores and the West Bromwich Fresh Meat Factory Shop only opened in 2016.
Meanwhile, today Crawshaw's shares were also suspended from trading on the London Stock Exchange's junior AIM market.
The administration move threatens 600 jobs.
It comes after the butcher said earlier this month that it was attempting to raise equity to restore growth and profitability.
According to its latest set of results for the six months to July 29, the group posted revenue of £21.6 million and a pre-tax loss of £1.7 million.
Black Country food mogul Ranjit Boparan holds a near 30 per cent stake in the business and his 2 Sisters Food Group also supplies Crawshaw.
The 'Chicken King' – so-called because of 2 Sisters' large-scale involvement in the poultry trade – is also an adviser to the board.
The collapse also comes just a month after Crawshaw unveiled plans to work with Black Country food supply business A F Blakemore, agreeing on a three-store trial that was expected to start in September. If the joint project with the Willenhall-based Spar wholesaler and retailer had been successful, it was expected a further 12 stores a year could be added.
Crawshaw said: "As previously announced on 26 October 2018, the board was considering a number of remedial actions including raising additional funding through an equity capital raising in order to address the key issues it had identified with the company.
"Since then, the board has been in discussions with existing investors and prospective investors. Unfortunately these discussions have not been successful in raising sufficient capital to address those key issues.
"The company does not have sufficient cash resources to effect the required restructuring of the business."
