Crawshaw Butchers appoints administrators with 600 jobs at risk

By Scunthorpe Telegraph | Posted: 31 Oct 2018

A popular regional butcher has called in the administrators – putting hundreds of jobs at risk.

Meat retailer Crawshaw Butchers has a factory shop in Warren Road, Scunthorpe, as well as stores in Hull's Whitefriargate and North Point Shopping Centre, as well as Grimsby's Top Town Market, with more than 40 more other outlets around the country.

It has been announced today the company has called in administrators after discussions with investors failed.

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 Scunthorpe factory shop.

Crawshaw's shares were also suspended from trading on the London Stock Exchange's junior AIM market.

The move threatens 600 jobs nationally.

It comes after the butcher said earlier this month that it was attempting to raise equity to restore growth and profitability.

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According to its latest set of results for the six months to July 29, the group posted revenue of £21.6m and a pre-tax loss of £1.7m.

A spokesman for Crawshaws said: "As previously announced on October 26, 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.

Crawshaws Butchers has called in administrators. (Reach Plc)

"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."

Ten years ago the managing director, Kevin Boyd, described how an early investment in Scunthorpe at the start of the century but the business on the road to success. 

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The 3,200 sq ft factory shop was then the only one of its kind in the chain, and the company’s second most profitable outlet. It had been bought seven years ago from local butcher David Jenkins.

“The factory shop has worked really well for Crawshaw, and it is a concept we intend to roll out, using Scunthorpe as a blueprint,” the MD explained, having listed and set out a plan to open 400 branches by 2023. 

At the time it operated a meat production facility in Grimsby's Charlton Street, but that has been closed for several years now.



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Source article: http://www.scunthorpetelegraph.co.uk/

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