News: Crawshaws heading for administration
The board at Rotherham-based meat retailer, Crawshaws, has announced its decision to appoint an administrator after it failed to find investment.
The UK's leading value butcher is based at Hellaby and operates 42 High Street stores and 12 factory stores.
The announcement comes just three years after the firm announced growth plans in 2015 that included £200m of investment, opening 200 stores and creating 2,500 jobs.
However, sales continued to decline amid challenging trading conditions and Crawshaw's management was forced to undertake a review of the business and implement a change programme to restore growth and profitability with a transition to focus more on factory store locations.
After reviewing its structure and investment in traditional high street locations, the Board said last week that it was considering a number of remedial actions to address the key issues it has identified, which may include raising additional funding through an equity capital raising.
The additional funding could not be secured.
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A statement to the stock exchange said: "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.
"In the light of the above and the operational and financial uncertainty which the Company now faces, in order to protect both shareholders and creditors, the Board has taken the decision to place the Company into administration and intends to appoint administrators shortly with the purpose of seeking buyers for the Group's business and assets on a going concern basis.
"As a result, the Board announces it has requested a suspension of trading in its shares on AIM with effect from 7.30am on 31 October 2018.
"Further announcements will be made in due course."
Crawshaw website
Images: Crawshaws
The UK's leading value butcher is based at Hellaby and operates 42 High Street stores and 12 factory stores.
The announcement comes just three years after the firm announced growth plans in 2015 that included £200m of investment, opening 200 stores and creating 2,500 jobs.
However, sales continued to decline amid challenging trading conditions and Crawshaw's management was forced to undertake a review of the business and implement a change programme to restore growth and profitability with a transition to focus more on factory store locations.
After reviewing its structure and investment in traditional high street locations, the Board said last week that it was considering a number of remedial actions to address the key issues it has identified, which may include raising additional funding through an equity capital raising.
The additional funding could not be secured.
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A statement to the stock exchange said: "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.
"In the light of the above and the operational and financial uncertainty which the Company now faces, in order to protect both shareholders and creditors, the Board has taken the decision to place the Company into administration and intends to appoint administrators shortly with the purpose of seeking buyers for the Group's business and assets on a going concern basis.
"As a result, the Board announces it has requested a suspension of trading in its shares on AIM with effect from 7.30am on 31 October 2018.
"Further announcements will be made in due course."
Crawshaw website
Images: Crawshaws
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