Monday, November 5, 2018

News: Jobs go as Crawshaws appoints administrators


350 redundancies have been made as Rotherham-based retailer, Crawshaws, formally appoints administrators.

Rothbiz reported last week that the Hellaby-based company was heading for administration after it failed to find investment for turnaround plans having suffered declining sales amid challenging trading conditions.

The UK's leading value butcher, which operated 42 High Street stores and 12 factory stores, has appointed Robert Hunter Kelly and Charles Graham John King, both of Ernst & Young LLP, as joint administrators.

An update to the stock exchange said: "Following consideration of the Group's financial position, the Group has ceased to trade from 35 stores and continues to trade from 19 stores which remain open and are trading as normal. The distribution centre at Astley has been closed and the stores and the Group's remaining businesses are being serviced and supplied from the Group's remaining distribution centre at Hellaby.


"As a result of the store closures it has been necessary to restructure the workforce for economic, organisational and technical reasons. This has resulted in 354 redundancies with the Group continuing to employ 261 staff to trade from, support and supply the 19 stores that remain open and operational as well as supply the three butcher's counters which are being trialled in Spar stores and the wholesale operations."

The Crawshaws outlet on Howard Street in Rotherham town centre has closed. The factory outlet at Hellaby, and the counter at the Spar in Wath continue to trade as the administrators look for the best deal for creditors.

The firm announced growth plans in 2015 that included £200m of investment, opening 200 stores and creating 2,500 jobs. After several years of financial losses, a review of the business was undertaken which showed that a change programme was needed to restore growth and profitability with a transition to focus more on factory store locations. Unsuccessful attempts were made to raise the additional investment required to fund the restructuring plan.

Crawshaws website

Images: Crawshaws


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